Better Home & Finance Introduces Crypto-Backed Mortgages

Real estate services company Better Home & Finance Holding Co. is making a significant move into the world of cryptocurrency-backed mortgages. In partnership with Coinbase, the company plans to introduce a new mortgage offering that will allow homeowners to use their cryptocurrency holdings as collateral for their down payment.

The crypto-backed mortgage is designed to cater to the growing number of Americans who own digital assets. According to a recent National Association of Realtors survey, only 1% of homebuyers used proceeds from the sale of cryptocurrencies for their down payments between July 2024 and June 2025.

This new mortgage offering will not require borrowers to sell their cryptocurrencies, keeping them at risk of potential future gains. Instead, borrowers who qualify for the mortgage will have to pledge their cryptocurrency holdings as collateral and transfer them to Coinbase. The company noted that this approach allows homeowners to retain control over their digital assets while still accessing a conventional mortgage.

The only types of cryptocurrencies eligible for use as collateral are Bitcoin and USDC. Borrowers will also benefit from significantly lower interest rates, thanks to the mortgage being designed in accordance with Fannie Mae guidelines. The company emphasized that the mortgage terms remain unchanged even if the value of the collateral drops, providing a unique advantage for homeowners.