Better Mortgage Introduces Bitcoin-Collateralized Home Loans Through Coinbase Partnership
A new cryptocurrency-backed mortgage offering from Better and Coinbase enables American homebuyers to use Bitcoin as down payment collateral while retaining ownership of their digital assets.
The partnership between Better Mortgage and Coinbase has resulted in the widespread availability of their Bitcoin-collateralized mortgage offering, providing American homebuyers with the opportunity to use Bitcoin as down payment collateral while avoiding liquidation of their holdings, the two companies revealed on Wednesday.
Based on information from Coinbase's Help Center, this offering combines a home loan backed by Fannie Mae with an additional down payment loan that uses Bitcoin (BTC) as security. Those seeking to borrow must commit BTC valued at a minimum of 250% of the down payment loan amount, with the committed BTC being moved to Better's custody account hosted on Coinbase Prime.
Both loan components feature identical interest rates and amortization schedules, with repayment handled via one consolidated monthly payment, according to Coinbase. The committed BTC gets released back to the borrower after complete mortgage repayment or upon refinancing, in accordance with the loan agreement.
Fluctuations in Bitcoin price that result in value decreases do not automatically trigger margin calls or modifications to the mortgage agreement. That said, Better retains the authority to liquidate the committed BTC should a borrower fall 60 days behind on their payment obligations, as stated by Coinbase.
Eligibility requires US residency along with a verified Coinbase account, while borrowers must still satisfy Better's standard credit, income and additional underwriting criteria. Those who subscribe to Coinbase One also qualify for a 1% rebate from Better, capped at $10,000, which may be applied to closing costs and associated fees.
The token-backed mortgage offering was first unveiled by Better and Coinbase in March, with initial availability limited to participants in an early-access program.
Crypto gains ground in US mortgage market
This product launch from Better and Coinbase occurs alongside wider initiatives aimed at integrating digital assets into mortgage underwriting processes across the United States.
During June 2025, the Federal Housing Finance Agency issued instructions to Fannie Mae and Freddie Mac to create proposals that would allow cryptocurrency stored on US-regulated centralized exchanges to be treated as an asset when conducting single-family mortgage risk assessments, eliminating the need for conversion into US dollars.
Additional US lending institutions have similarly started trending in this direction. In January, mortgage lender and servicer Newrez made an announcement that it would begin acknowledging specific cryptocurrency holdings during mortgage application evaluations starting in February, covering both home purchase transactions and refinancing scenarios.
This growth in Bitcoin-backed home financing options arrives at a time when US residential real estate prices continue hovering near all-time peaks. According to data compiled by the Federal Reserve Bank of St. Louis from the US Census Bureau and Department of Housing and Urban Development, the median sales price for a new US home stood at approximately $400,000 in 2026.
