Better Mortgage and Coinbase have expanded their Bitcoin-backed mortgage option, moving it into general availability for eligible US homebuyers. The product is designed to let borrowers use Bitcoin as collateral for a down payment while keeping the primary home loan tied to a Fannie Mae-backed mortgage.
Announced Wednesday, the offering combines two linked loans: a Fannie Mae-backed home loan from Better and a separate down payment loan secured by Bitcoin. According to Coinbase’s Help Center, borrowers must pledge BTC worth at least 250% of the down payment loan amount, with the pledged Bitcoin transferred to Better’s custodial account on Coinbase Prime.
Key takeaways
- Better and Coinbase’s token-backed mortgage is now generally available to qualifying US borrowers.
- Borrowers pledge Bitcoin to secure the down payment loan, without having to sell BTC.
- Coinbase states Bitcoin price declines alone do not automatically trigger margin calls or mortgage term changes.
- Better may liquidate pledged BTC if a borrower is 60 days delinquent on payments.
- Eligible Coinbase One members can receive a Better rebate, subject to a $10,000 cap.
How the Bitcoin-collateral mortgage works
The structure is built around two synchronized components with shared repayment timing. Coinbase said both loans use the same interest rate and amortization term, and repayment occurs through a single monthly payment.
Once the mortgage is fully repaid or refinanced, the pledged BTC is returned, provided the loan terms are satisfied. Coinbase emphasized that the mortgage is not designed to reprice automatically based purely on Bitcoin volatility.
Specifically, Coinbase notes that declines in the BTC price by themselves do not trigger margin calls or change mortgage terms. The key exception is delinquency: if a borrower becomes 60 days past due on payments, Better has the ability to liquidate the pledged Bitcoin, according to Coinbase.
Eligibility and incentives for borrowers
Participation is limited to US residents with a verified Coinbase account, and borrowers remain subject to Better’s standard credit, income, and underwriting requirements. Coinbase also said the product is delivered through Better’s mortgage process, with BTC held in Better’s custody via Coinbase Prime.
Coinbase One members are eligible for a 1% rebate from Better, subject to a $10,000 cap. The rebate can be applied toward closing costs and fees, which may reduce upfront transaction expenses for qualifying borrowers.
Regulatory momentum behind crypto in mortgage underwriting
The rollout arrives during a period of increasing institutional attention to how digital assets could be treated within US mortgage risk models. In June 2025, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to develop proposals to consider cryptocurrency held on US-regulated centralized exchanges as an asset in single-family mortgage risk assessments—without requiring that the crypto be converted to US dollars.
The FHFA directive also asked the enterprises to consider risk-mitigation measures tied to crypto’s volatility and to submit proposed changes to their boards for approval before the FHFA review process.
That direction is part of a broader shift in how lenders and regulators approach collateral quality and volatility. Rather than forcing borrowers to exit exposure to digital assets at origination, the emerging framework aims to evaluate crypto holdings directly, provided that volatility controls and governance are in place.
Other lenders moving—and what comes next for borrowers
Coinbase and Better are not the only players testing this approach. Mortgage lender and servicer Newrez announced in January that it would recognize certain cryptocurrency holdings in its mortgage application evaluations beginning in February, covering both home purchases and refinancing. The movement suggests that, while the specifics vary by lender, the market is increasingly experimenting with practical pathways for incorporating regulated crypto holdings into underwriting.
Housing affordability remains constrained even as crypto-linked collateral options expand. US housing price levels have stayed elevated by historical standards, even after some pullbacks: data compiled by the Federal Reserve Bank of St. Louis indicates the median sales price of a new US home was about $400,000 in 2026, using figures from the US Census Bureau and the US Department of Housing and Urban Development.
For investors and borrowers alike, the Better-Coinbase expansion is likely to be watched as an early test case for whether “hold-to-borrow” models can scale in mainstream mortgage workflows. Key uncertainties remain around how different volatility scenarios are handled across lenders, how regulators will evaluate risk-mitigation proposals, and whether more mortgage originators will follow Fannie Mae and Freddie Mac’s evolving guidance.
