Better Mortgage Coinbase Bitcoin Down Payment Loan Availability
Better Mortgage and Coinbase launch general availability of Bitcoin-collateralized down-payment loans with 40 percent advance rate and delinquency-based liquidation.
Better Mortgage and Coinbase announced general availability on August 26 of a token-backed conforming mortgage product. Borrowers obtain a standard first mortgage plus a separate loan that funds the down payment, secured by pledged Bitcoin and a second lien on the property.
Bitcoin moves to Coinbase Prime custody under Better Mortgage's account. The borrower retains economic exposure but loses control and liquidity of the coins for the pledge period. A verified Coinbase account, minimum 680 FICO score, and Fannie Mae conforming criteria are required; availability is limited to select states.
Remaining unknowns
Current terms set a 40 percent advance rate, so $250,000 of Bitcoin supports a $100,000 down-payment example. Advance rates remain subject to change without notice. Day-to-day Bitcoin price changes do not trigger margin calls or forced sales; the liquidation trigger is 60 days of payment delinquency.
Individual loan documents govern remedies. A forced sale on delinquency can create taxable events and remove future upside for the borrower. Advance rates, state availability, and exact underwriting standards remain subject to change.