Coinbase and Better Launch Bitcoin-Backed Mortgage Product

Coinbase and Better Mortgage have moved their bitcoin‑backed home‑financing offering from a waitlist to general availability, allowing qualifying U.S. borrowers to pledge bitcoin as collateral for a down‑payment loan.

How the product works

The structure combines two loans:

• A standard, Fannie Mae‑conforming first‑lien mortgage.
• A second‑lien down‑payment loan secured by pledged bitcoin held in Coinbase Prime custody.

Both loans share the same interest rate and term, resulting in a single monthly payment.

Collateral requirements

Bitcoin is valued at 40 % of its market price for collateral purposes, creating a 250 % collateralisation ratio. For example, $250,000 of bitcoin can support a $100,000 down‑payment loan.

Bitcoin price declines do not trigger margin calls; liquidation is only possible after the borrower is 60 days delinquent on the down‑payment loan.

Closing‑cost credit

Coinbase One members may receive a lender credit of up to 1 % of the loan principal, capped at $10,000, as a closing‑cost credit paid by Better.

Eligibility and availability

Applicants must meet a minimum FICO score of 680, satisfy Fannie Mae conforming‑loan criteria, and purchase property in an eligible jurisdiction. The program may be limited to certain states, and all loans remain subject to underwriting approval.

Projected demand

Better reported that waitlist responses indicated potential loan volume exceeding $260 million, though this reflects borrower interest rather than approved loans.