Better and Coinbase Open Bitcoin-Backed Mortgages to All US Homebuyers

Better Mortgage and Coinbase have made their Bitcoin-backed mortgage product generally available, allowing US homebuyers to pledge BTC as collateral for a down payment without selling their holdings, the companies announced Wednesday. The product pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin, and borrowers must pledge BTC worth at least 250% of the down payment loan amount. The collateral is transferred to Better's custodial account on Coinbase Prime, and the two loans carry identical interest rates, amortization terms, and a single combined monthly payment.

The pledged Bitcoin is returned once the mortgage is fully repaid or refinanced, subject to loan terms. Importantly, price declines in BTC alone do not trigger margin calls or change mortgage conditions, though Better retains the right to liquidate the pledged Bitcoin if a borrower becomes 60 days delinquent on payments. Borrowers must be US residents with a verified Coinbase account and must still meet Better's standard credit, income, and underwriting requirements. Coinbase One members qualify for a 1% rebate from Better, capped at $10,000, applicable toward closing costs and fees.

The launch follows the Federal Housing Finance Agency's June 2025 directive ordering Fannie Mae and Freddie Mac to develop proposals for incorporating cryptocurrency held on US-regulated centralized exchanges into single-family mortgage risk assessments. The directive also required the government-sponsored enterprises to evaluate risk-mitigation strategies for crypto volatility and submit proposed changes for board approval before FHFA review. Other lenders are following suit: Newrez announced in January that it would recognize certain crypto holdings when evaluating mortgage applications starting in February.

Better and Coinbase first announced the token-backed mortgage product in March, initially rolling it out through an early-access program. The broader availability marks a concrete step toward integrating digital assets into the US mortgage underwriting process, though industry sentiment remains mixed—a recent survey found that 77% of Americans view crypto in retirement plans as risky.