ChainCatcher report: Better Mortgage and Coinbase have announced the full launch of their Bitcoin-backed mortgage product, enabling U.S. homebuyers to use Bitcoin as collateral for a down payment without selling it. The product combines a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin. Borrowers must pledge at least 250% of the down payment loan amount in Bitcoin, with the collateral held in a Better-managed custody account on Coinbase Prime. Both loans share the same interest rate and amortization term and are repaid through a single monthly payment; upon full repayment or refinancing of the mortgage, the pledged Bitcoin will be returned. A decline in Bitcoin’s price alone will not trigger a margin call or alter loan terms, but if a borrower defaults for 60 days, Better has the right to liquidate the pledged Bitcoin. Borrowers must be U.S. residents with a verified Coinbase account; Coinbase One members are eligible for up to a 1% cashback of $10,000. The product was first announced and opened for early access in March this year. Previously, in June 2025, the Federal Housing Finance Agency instructed Fannie Mae and Freddie Mac to study incorporating cryptocurrency into mortgage risk assessments; mortgage lender Newrez also announced in January that it would begin recognizing certain cryptocurrency assets in mortgage applications starting in February.
Better and Coinbase Launch Bitcoin Mortgage Product in the U.S.
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Summary
Better Mortgage and Coinbase have launched a Bitcoin-backed mortgage product in the U.S., allowing homebuyers to use cryptocurrency as collateral for their down payment. The offering combines a Fannie Mae-backed mortgage with a Bitcoin-secured down payment loan. Borrowers must stake 250% of the down payment amount in Bitcoin through a Coinbase Prime custodial account. Both loans feature identical interest rates and repayment terms. While declines in Bitcoin’s price do not alter loan terms, Better may liquidate the collateral after 60 days of default. U.S. residents with verified Coinbase accounts are eligible, and Coinbase One members may receive up to a $10,000 rebate. The product supports crypto value investing strategies. Previously, regulatory acceptance enabled crypto assets to be incorporated into mortgage risk assessments.
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