US Homebuyers Can Now Use Bitcoin as Mortgage Collateral via Coinbase and Better

Better Mortgage and Coinbase have officially launched a novel Bitcoin-backed mortgage product for qualified homebuyers in the United States. Under this structure, buyers can combine a conventional mortgage backed by Fannie Mae with a separate down payment loan secured by pledging Bitcoin or USDC collateral without needing to liquidate their cryptocurrency holdings. Borrowers are required to deposit crypto assets worth at least 250% of the down payment loan value into Better's Coinbase Prime custody account, which is returned once the loan is fully repaid or refinanced. The offering features aligned interest rates and repayment schedules consolidated into a single monthly bill. Importantly, Bitcoin market price volatility alone will not trigger margin calls, although defaulting on payments for 60 days or more can lead to liquidation. Coinbase One subscribers are eligible for a 1% lender credit up to $10,000 toward closing costs. The initiative follows strong initial interest, with a waitlist demonstrating over $260 million in prospective loan demand, signaling broader real-world utility and adoption for digital assets in traditional real estate finance.