Better Mortgage lets homebuyers use Bitcoin for down payments without margin calls

Bitcoin-backed down payments now available

Better Mortgage and Coinbase announced on Aug. 26 that homebuyers can now use Bitcoin as collateral for a down payment loan. The program pairs a standard mortgage with a second loan secured by Bitcoin, allowing borrowers to use up to $250,000 in Bitcoin to cover the down payment without selling their assets.

The Bitcoin is held in a custodial account managed by Better on Coinbase Prime. Borrowers keep economic exposure to their Bitcoin but cannot sell, transfer, or re-pledge it without permission during the loan term.

No margin calls on price drops

Unlike traditional crypto-backed loans, Bitcoin price movements alone do not trigger margin calls or forced sales. The only trigger for liquidation is payment delinquency: if a borrower misses a payment and remains delinquent for 60 days, Better may sell the pledged Bitcoin to cover the debt.

Key details

• Better offers a 40% advance rate, meaning $250,000 in Bitcoin can secure a $100,000 down payment loan.
• Applicants need a verified Coinbase account, a minimum 680 FICO score, and must meet Better’s underwriting and location requirements.
• Coinbase provides the custody and transfer infrastructure but does not originate or service the loans.
• The second loan is secured by both the pledged Bitcoin and a second lien on the property.

What is still unclear

Better’s program terms state that advance rates and eligibility may change without notice. The company has not published a full list of eligible states, and individual loan documents will determine final obligations and remedies.

Sources

• CryptoSlate