Coinbase and Better Mortgage launch Bitcoin-backed mortgages

Coinbase and Better Mortgage have launched a general availability program for Bitcoin-backed mortgages, allowing borrowers to secure home down payments using BTC as collateral without selling their holdings.

The financing utilizes a two-loan structure. The first is a standard conforming mortgage following Fannie Mae guidelines, while the second loan uses the pledged BTC and a second lien on the property as collateral. The BTC is held in a custody account via Coinbase Prime.

Under the terms, the BTC collateralization ratio is 250%, enabling borrowers to access up to 40% of the asset's value for their down payment. While the program does not trigger margin calls due to BTC price fluctuations, Better Mortgage reserves the right to sell the collateral if a payment is more than 60 days overdue.

Coinbase One members who qualify for a Better loan may receive a lender credit of 1% of the mortgage principal, capped at $10,000, to be applied toward closing costs.