Coinbase and Better Mortgage Launch Bitcoin-Backed Down Payment Loans

Coinbase and Better Mortgage have made a Bitcoin‑backed mortgage product generally available to qualified U.S. homebuyers. The offering allows borrowers to secure a down‑payment loan without selling their Bitcoin, using a two‑loan structure that combines a traditional Fannie Mae‑backed mortgage with a separate crypto‑secured loan.

How the Two‑Loan Structure Works

Better originates and services a standard first‑lien mortgage that meets Fannie Mae’s conforming guidelines. In parallel, a second loan, secured by the borrower’s Bitcoin, provides the cash needed for the down payment. Both loans share the same interest rate and amortization period, and borrowers make a single combined monthly payment.

Collateral Requirements and Risks

• Borrowers must pledge Bitcoin worth at least 250 % of the down‑payment amount (e.g., $250,000 of BTC for a $100,000 down payment).
• The Bitcoin is transferred from a verified Coinbase account to Better’s custodial account on Coinbase Prime and cannot be traded or withdrawn during the loan term.
• Bitcoin price declines do not trigger margin calls or alter loan terms.
• If a borrower becomes 60 days delinquent on payments, Better may liquidate the pledged Bitcoin.

Eligibility and Application Process

Applicants must be U.S. residents with a verified Coinbase account in good standing, meet Better’s credit and income underwriting standards, and hold sufficient Bitcoin to satisfy the 250 % collateral rule. Coinbase does not originate the mortgage or make lending decisions; it provides the infrastructure for collateral transfer and custody.

Tax and Rebate Considerations

Pledging Bitcoin does not constitute a taxable sale, but any future liquidation of the collateral could generate tax consequences under IRS guidance that treats digital assets as property. Coinbase One members approved for the product can receive a rebate equal to 1 % of the mortgage value, capped at $10,000, applied as a lender credit at closing.

Market Context

The product follows earlier pilot loans, including the first Fannie Mae‑backed mortgage funded with Bitcoin collateral in June 2025. Regulatory signals from the FHFA and other lenders indicate growing acceptance of crypto holdings in mortgage risk assessments.