Key Highlights
- A new Bitcoin-backed mortgage offering is now accessible to American homebuyers through Better Mortgage and Coinbase
- Applicants must commit Bitcoin valued at a minimum of 250% of their down payment loan amount as security without liquidating their cryptocurrency
- Subscribers to Coinbase One receive a 1% lender credit, with a maximum of $10,000, applied to closing expenses
- Fluctuations in Bitcoin’s value alone do not initiate margin calls, though payment defaults may result in asset liquidation
- General access commenced on August 12, after a waitlist period that indicated more than $260 million in anticipated loan demand
American homebuyers now have access to a innovative Bitcoin-backed mortgage offering from Better Mortgage and Coinbase, enabling them to leverage their Bitcoin investments as security for down payments while maintaining ownership of their digital assets.
This financial product combines a conventional home loan backed by Fannie Mae with a distinct down payment loan that’s secured through Bitcoin holdings. Applicants are required to commit Bitcoin valued at no less than 250% of their requested down payment loan.
The committed Bitcoin gets transferred into Better’s custody account managed through Coinbase Prime. Upon complete repayment or refinancing of the mortgage, the Bitcoin collateral is released back to the homeowner.
Understanding the Loan Structure
Both the primary mortgage and the down payment loan feature identical interest rates and repayment schedules. Homeowners consolidate their obligations through one monthly payment that covers both loan components.
Market fluctuations in Bitcoin price by themselves will not prompt margin calls or alter the mortgage agreement terms. That said, if payment obligations go unmet for 60 days or more, Better Mortgage reserves the right to liquidate the collateralized Bitcoin.
Eligibility requires US residency and an active, verified Coinbase account. Applicants must also satisfy Better’s conventional creditworthiness and income verification standards.
Those with Coinbase One membership qualify for a lender credit equivalent to 1% of their total mortgage amount, with a ceiling of $10,000. This credit gets applied directly to closing costs and appears on the official closing disclosure statement.
Coinbase One members gained access to this product on August 12. The two companies initially revealed their collaboration in March and subsequently launched a waitlist program in June.
Significant Initial Interest
The waitlist phase revealed substantial market appetite for this product. According to the companies, 76% of those expressing interest were current Coinbase One subscribers, while 60% intended to purchase residential property within a half-year timeframe.
Estimated loan volume derived from waitlist participants surpassed $260 million prior to the public launch.
Better Mortgage reported that 41% of its pre-qualified applicants meet income and credit standards but lack sufficient liquid capital for conventional down payment requirements. The lender has originated over $110 billion in total loan volume throughout its history.
This mortgage product accepts both Bitcoin and USDC as acceptable forms of collateral for securing down payments.
This development follows a broader industry trend of lenders incorporating cryptocurrency into mortgage qualification processes. Newrez made an announcement in January 2026 regarding its plan to recognize specific crypto assets in mortgage applications beginning February.
The Federal Housing Finance Agency issued guidance in June 2025 instructing Fannie Mae and Freddie Mac to investigate how cryptocurrency maintained on regulated American exchanges could serve as a qualifying asset in mortgage risk evaluations, eliminating the need for dollar conversion.
American residential real estate prices continue hovering near record levels. Federal Reserve statistics indicate the median price for newly constructed US homes stood at approximately $400,000 throughout 2026.
