Better Mortgage and Coinbase launch Bitcoin-backed home loans in the U.S.

Bitcoin can now be used for down payments on U.S. homes

Better Mortgage and Coinbase have launched a new mortgage product that lets U.S. homebuyers use Bitcoin as collateral for a down payment. This means borrowers do not have to sell their Bitcoin to make a down payment on a home.

The product is now available to all eligible U.S. residents after an early-access program that started in March.

How the Bitcoin-backed mortgage works

The product combines two loans: a traditional home loan backed by Fannie Mae and a separate down payment loan secured by Bitcoin. Borrowers must pledge Bitcoin worth at least 250% of the down payment loan amount. The Bitcoin is held in a custodial account managed by Better on Coinbase Prime, a platform for institutional investors.

Both loans have the same interest rate and repayment term, and borrowers make a single monthly payment. The pledged Bitcoin is returned once the mortgage is fully repaid or refinanced, depending on the loan terms.

If the borrower misses payments for 60 days, Better can sell the pledged Bitcoin. However, a drop in Bitcoin’s price alone does not trigger a margin call or change the mortgage terms.

Who can apply and what are the requirements

To qualify, borrowers must be U.S. residents with a verified Coinbase account. They must also meet Better’s standard credit, income, and underwriting requirements. Coinbase One members, who pay a monthly fee for premium services, can receive a 1% rebate from Better, up to $10,000, to help cover closing costs and fees.

Why lenders are starting to accept crypto

This product is part of a broader trend of U.S. lenders incorporating digital assets into mortgage underwriting. In June 2025, the Federal Housing Finance Agency (FHFA) instructed Fannie Mae and Freddie Mac to explore ways to include cryptocurrency held on regulated U.S. exchanges as an asset in mortgage risk assessments. The FHFA also asked for risk-mitigation measures to address crypto’s price volatility.

Other lenders, like Newrez, have also started recognizing certain cryptocurrency holdings when evaluating mortgage applications for home purchases and refinancing.

What this means for homebuyers

With U.S. home prices near historic highs—the median sales price of a new home was about $400,000 in 2026—this product could help buyers who hold Bitcoin but do not want to sell it to access home financing. However, borrowers should be aware of the risks, such as the possibility of losing their pledged Bitcoin if they fall behind on payments.

Sources

• Cointelegraph