Better launches Bitcoin-backed mortgages powered by Coinbase

Better Mortgage and Coinbase have made their Bitcoin‑backed mortgage product generally available to U.S. homebuyers. The offering lets borrowers use Bitcoin (BTC) as collateral for a down‑payment loan while keeping the crypto in their possession.

How the product works

The structure pairs a Fannie Mae‑backed home loan with a separate down‑payment loan secured by Bitcoin. Borrowers must pledge BTC worth at least 250 % of the down‑payment amount, and the pledged coins are transferred to Better’s custodial account on Coinbase Prime.

Loan terms and repayment

• Both the primary mortgage and the Bitcoin‑secured down‑payment loan share the same interest rate and amortization schedule.
• Borrowers make a single monthly payment that covers both loans.
• The pledged Bitcoin is returned after the mortgage is fully repaid or refinanced, subject to the loan agreement.

Risk management and defaults

Bitcoin price declines do not trigger margin calls or alter mortgage terms. However, if a borrower becomes 60 days delinquent, Better may liquidate the pledged Bitcoin to cover the debt.

Eligibility and incentives

• Borrowers must be U.S. residents with a verified Coinbase account and meet Better’s standard credit and income underwriting criteria.
• Coinbase One members can receive a 1 % rebate from Better (capped at $10,000) toward closing costs and fees.

Regulatory backdrop

The product follows broader regulatory signals encouraging the inclusion of digital assets in mortgage underwriting. In June 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to consider cryptocurrency held on regulated exchanges as an asset in mortgage risk assessments, without requiring conversion to U.S. dollars.

Other lenders, such as Newrez, have also begun recognizing cryptocurrency holdings in mortgage applications.

Market context

U.S. housing prices remain near historic highs, with the median price of a new home around $400,000 in 2026. The new Bitcoin‑backed financing option provides an alternative for buyers who wish to retain exposure to crypto while purchasing a home.