Better Mortgage, operated by Better Home & Finance Holding Co., and cryptocurrency exchange Coinbase opened their token-backed mortgage product to general availability on August 26, following an early-access rollout for Coinbase One members on August 12. The structure allows qualified homebuyers to cover cash down payments by borrowing against bitcoin rather than selling their holdings.
The product pairs a standard Fannie Mae conforming first-lien mortgage with a separate, second-lien loan that funds the down payment and is secured by pledged bitcoin. Better originates and services both loans, while the bitcoin is held in a custodial account on Coinbase's platform. This design allows the primary home loan to comply with Fannie Mae guidelines without treating unconverted digital assets as the direct source of funds.
Under the loan terms, borrowers can pledge bitcoin valued at 250% of the down-payment loan, meaning $100,000 in bitcoin secures $40,000 toward the down payment. Additionally, approved Coinbase One members are eligible for closing-cost credits of up to $10,000, equivalent to 1% of eligible mortgage, refinancing, or home equity line of credit balances.
Ahead of the general release, waitlist data indicated more than $260 million in projected loan volume. The companies reported that 76% of respondents on the waitlist were already subscribed to Coinbase One, and 60% intended to purchase a home within six months.
Unlike certain crypto-backed credit products, Better’s mortgage structure does not trigger margin calls or liquidations based solely on declines in the price of bitcoin. Pledged assets are only subject to sale by Better in the event of a 60-day payment delinquency.
