Better Mortgage and Coinbase have introduced a bitcoin-backed mortgage product in the United States, giving eligible homebuyers a way to use BTC as collateral for a down payment loan without selling their holdings. The product is already open for applications.
The structure combines a Fannie Mae-backed mortgage with a separate down payment loan. Borrowers must pledge BTC worth at least 250% of the down payment loan, with the collateral transferred to Better’s custody account on Coinbase Prime. Both loans carry the same interest rate and amortization term, and borrowers make a single monthly payment.
A decline in bitcoin’s price on its own does not trigger a margin call or change the mortgage terms. Still, Better can liquidate the pledged BTC if a borrower becomes 60 days delinquent. Applicants must be U.S. residents and hold a verified Coinbase account. Coinbase One members may also receive up to $10,000 in 1% cashback to offset closing costs and fees, according to Cointelegraph.
Better Mortgage and cryptocurrency exchange Coinbase have launched a bitcoin-backed mortgage product in the United States, allowing homebuyers to use BTC as collateral for a down payment loan without selling their bitcoin holdings. The product is now open for applications.
The offering combines a Fannie Mae-backed mortgage with a separate down payment loan. Borrowers must pledge BTC worth at least 250% of the down payment loan, and the collateral will be transferred into Better’s custody account on Coinbase Prime.
Both loans carry the same interest rate and amortization term, with repayment made through a single monthly payment. A drop in bitcoin’s price by itself will not trigger a margin call or alter the mortgage terms. If a borrower is 60 days delinquent, however, Better may liquidate the pledged BTC.
Applicants must be U.S. residents and hold a verified Coinbase account. Coinbase One members can also receive up to $10,000 in 1% cashback to offset closing costs and fees.
The report was cited by Cointelegraph.
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