Better Mortgage and Coinbase announced general availability of their Bitcoin-backed mortgage product on August 26, 2026. Eligible US homebuyers can now borrow their down payment against Bitcoin holdings without selling the coins.
The rollout follows an early access announcement in March. Better provides the loans, while Coinbase supports the account services and transfers needed to pledge Bitcoin. The first completed loan went to a couple in Ann Arbor, Michigan, in June.
Bitcoin-Backed Mortgages Use Two Loans
The financing combines a home loan that follows Fannie Mae guidelines with a separate loan for the down payment. Better also takes a second legal claim against the home to secure that additional borrowing, according to its product terms.
Coinbase states, “Bitcoin collateral must be worth at least 250% of the down payment loan amount.” A borrower seeking $100,000 for a down payment therefore needs Bitcoin worth at least $250,000. For a $500,000 home, this would mean a standard $400,000 mortgage plus the separate $100,000 cash down payment loan.
Both loans carry the same interest rate and repayment term. Borrowers make one combined monthly payment. Better offers fixed mortgage terms of 15 or 30 years. After approval, borrowers authorize the transfer of their pledged BTC to Better’s custodial account on Coinbase Prime. Better holds the coins, so borrowers cannot trade or withdraw them while they serve as collateral.
The current product accepts Bitcoin. Better lists single family homes, condominiums and townhouses among eligible properties, subject to Fannie Mae requirements.
Bitcoin Price Drops Do Not Trigger Margin Calls
Falling Bitcoin prices alone do not change loan terms or require borrowers to provide more collateral. Better’s rules separate market price changes from missed loan payments. However, Better may sell the pledged Bitcoin if a borrower falls 60 days behind on payments. The lender starts counting delinquency from the day after a missed payment, according to its published terms.
Coinbase says Better holds the collateral until the mortgage reaches full repayment or refinancing. The return of pledged Bitcoin depends on the loan terms.
Applicants must live in the United States and maintain a verified Coinbase account in good standing. They also need enough Bitcoin to meet the collateral requirement. Meanwhile, Better checks income, credit and other financial details before approving an application.
Holding enough Bitcoin does not guarantee that an applicant qualifies for financing. Better also manages closing, payment collection and escrow questions. Coinbase does not approve applications or service the mortgage.
Coinbase One Rebate Covers Closing Costs
Coinbase One members who secure eligible Better financing can receive a credit equal to 1% of the mortgage value. Better caps the benefit at $10,000 and applies it to closing costs rather than paying it directly to borrowers.
The expanded offer also covers standard mortgages, home equity lines of credit and refinancing. It became available to qualifying members on August 12, according to the companies’ announcement. The lender records the credit on the borrower’s final closing disclosure.
However, Coinbase One membership is not a requirement for the Bitcoin-backed mortgage itself. Nonmembers can apply if they meet the lending and account requirements, but they cannot receive the membership rebate.
Better said its June waitlist represented more than $260 million in projected loan volume before general availability. Among respondents, 76% already held Coinbase One memberships, while 60% planned to buy a home within six months. Those figures reflect prospective borrowing from waitlist responses, not the value of loans already completed.
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Disclaimer : Crypto News India does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
