Better Mortgage has opened applications for a home loan product that allows United States buyers to use Bitcoin toward their home deposit without having to sell the asset. Coinbase provides custody for the Bitcoin, while Better handles the lending process.
A crypto-backed mortgage through Better involves two connected loans. The first is a conventional mortgage meeting Fannie Mae requirements, while the second supplies the cash needed for the deposit, is secured by the borrower's Bitcoin, and places a second claim on the property. According to Better's product page, a buyer seeking a $100,000 deposit loan must pledge $250,000 in Bitcoin.
Better holds the Bitcoin in its account on Coinbase until the loan is repaid or refinanced. Buyers can select between 15-year and 30-year fixed terms and make one combined monthly payment. While this allows borrowers to retain their Bitcoin without selling during a purchase, a large portion of the asset remains unavailable for the duration of the loan. Better has stated that Ethereum and Solana will be accepted in the future, but only Bitcoin is supported currently.
Better confirmed that falling Bitcoin prices will not trigger a margin call or automatic liquidation based solely on market movements. However, missed payments carry distinct risks. Borrowers have 30 days to bring a late account current, and if the delay reaches 60 days, Better may sell the pledged Bitcoin. Legal proceedings involving the home begin separately after 180 days, adhering to Fannie Mae rules.
Qualifying Coinbase One members are eligible for a lender credit worth 1% of the mortgage, capped at $10,000, which can be applied to closing costs and other fees. Information between the companies remains conflicting regarding availability, as Better states that applications are currently open, whereas Coinbase's support page still lists the mortgages as coming soon.
