Key Highlights
- A new Bitcoin-collateralized mortgage offering is now accessible to American homebuyers through Better Mortgage and Coinbase
- Homebuyers must secure the down payment loan with Bitcoin collateral valued at a minimum of 250% of the loan amount
- Subscribers to Coinbase One receive a lender credit of 1% (maximum $10,000) applicable to closing expenses
- Declining Bitcoin values by themselves do not initiate margin calls, though payment defaults may result in collateral liquidation
- Following a waitlist period that indicated more than $260 million in anticipated loan demand, the program opened to all eligible borrowers on August 12
A collaborative venture between Better Mortgage and Coinbase has introduced a novel Bitcoin-collateralized mortgage solution for American homebuyers, enabling them to leverage their cryptocurrency holdings as security for down payments while maintaining ownership of their digital assets.
This innovative financing structure combines a traditional Fannie Mae-guaranteed mortgage with a complementary down payment loan that uses Bitcoin as security. Participants must commit Bitcoin valued at no less than 250% of the required down payment loan.
The committed Bitcoin holdings are moved into Better’s custodial arrangement on Coinbase Prime. These digital assets are released back to the homeowner upon complete mortgage satisfaction or when the loan undergoes refinancing.
Program Mechanics and Structure
Both financing components feature identical interest rates and amortization schedules. Homeowners submit one consolidated monthly payment that satisfies both obligations.
Market fluctuations in Bitcoin price do not automatically activate margin requirements or modify loan conditions. Nevertheless, should a borrower default on payments for 60 days or more, Better reserves the authority to liquidate the collateralized Bitcoin.
Eligibility requires US residency and possession of a validated Coinbase account. Conventional creditworthiness and income verification standards established by Better remain in effect.
Members of Coinbase One qualify for a financial credit equivalent to 1% of the total mortgage amount, with a ceiling of $10,000. This credit reduces closing costs and appears on the final settlement statement.
General access to the mortgage product commenced on August 12 for Coinbase One subscribers. The partnership was initially revealed in March, with a registration waitlist opening in June.
Substantial Initial Interest
The waitlist phase demonstrated considerable market enthusiasm. Company representatives reported that 76% of registrants maintained existing Coinbase One memberships, while 60% indicated home purchase intentions within a six-month timeframe.
Anticipated loan volume derived from waitlist data surpassed $260 million prior to the public launch.
Better indicated that 41% of its pre-qualified applicants meet income and credit standards but lack sufficient liquid funds for conventional down payment requirements. The organization has originated over $110 billion in total loan value historically.
The financing option accommodates both Bitcoin and USDC as acceptable forms of down payment collateral.
This introduction follows similar moves by competing lenders to incorporate cryptocurrency into mortgage qualification processes. Newrez revealed in January 2026 its intention to acknowledge specific crypto assets in mortgage applications beginning in February.
During June 2025, the Federal Housing Finance Agency instructed Fannie Mae and Freddie Mac to investigate the feasibility of incorporating cryptocurrency maintained on regulated American exchanges as qualifying assets for mortgage risk evaluations, eliminating the requirement for dollar conversion.
American residential property values continue hovering near unprecedented levels. Federal Reserve statistics indicate the median price for newly constructed US homes stood approximately at $400,000 throughout 2026.
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