The real estate market is witnessing a groundbreaking development as Better Mortgage and Coinbase have launched a Bitcoin-backed mortgage product. This innovative financial solution enables US homebuyers to pledge their Bitcoin holdings as collateral for down payments, eliminating the need to sell their digital assets.
This collaboration marks a significant step in integrating cryptocurrency into traditional financial services, offering a new pathway to homeownership for those who hold digital assets. The product is now generally available, following an early-access program that began in.
How the Bitcoin-Backed Mortgage Works
The Bitcoin-backed mortgage product pairs a Fannie Mae-backed home loan with a separate down payment loan secured by Bitcoin (BTC). Borrowers must pledge BTC worth at least 250% of the down payment loan, which is transferred to Better’s custodial account on Coinbase Prime.
The two loans share the same interest rate and amortization term and are repaid through a single monthly payment. The pledged BTC is returned once the mortgage is fully repaid or refinanced, subject to the loan terms. Notably, Bitcoin price declines alone do not trigger margin calls or changes to the mortgage terms. However, Better can liquidate the pledged BTC if a borrower becomes 60 days delinquent on payments.
To qualify, borrowers must be US residents with a verified Coinbase account and meet Better’s credit, income, and other underwriting requirements. Additionally, Coinbase One members are eligible for a 1% rebate from Better, subject to a $10,000 cap, which can be used toward closing costs and fees.
The Broader Impact on the US Mortgage Market
This product launch comes amid broader efforts to incorporate digital assets into US mortgage underwriting. In, the Federal Housing Finance Agency (FHFA) directed Fannie Mae and Freddie Mac to develop proposals considering cryptocurrency held on US-regulated centralized exchanges as an asset in single-family mortgage risk assessments, without requiring conversion to US dollars.
The FHFA directive also required the two government-sponsored enterprises to consider risk-mitigation measures for crypto’s volatility and submit any proposed changes to their boards for approval before FHFA review. Other US lenders, such as Newrez have also begun recognizing certain cryptocurrency holdings when evaluating mortgage applications.
The expansion of Bitcoin-backed home financing is particularly relevant as US housing prices remain near historic highs. The median sales price of a new US home was about $400,000 in 2026, according to data from the US Census Bureau and the Department of Housing and Urban Development.
The Vision Behind the Partnership
Ziggy Jonsson, Chief Technology Officer at Better Mortgage, emphasized the partnership’s goal of expanding access to homeownership. He noted that in 2026, high interest rates, record home prices, and limited inventory pushed the median age of a first-time homebuyer to 40. By allowing Coinbase One members to pledge crypto as collateral without selling their holdings, the partnership aims to open a new path toward homeownership for a generation of borrowers whose wealth increasingly lives onchain.
Ben Shen, Head of Financial Services and Loyalty Products at Coinbase, highlighted the trust that Coinbase members have in the platform. He stated that by enabling borrowers to pledge their digital assets in the mortgage underwriting process, the partnership is making crypto more useful and powerful in the real world, expanding pathways to homeownership while preserving long-term investment positions.
The debut loan by Coinbase and Better was closed by a married Michigan couple, Joe and Amy, in June. The couple used their Bitcoin holdings as collateral to fund their down payment rather than liquidating their position. This success story underscores the potential of Bitcoin-backed mortgages to revolutionize the homebuying process for crypto holders.
