Crypto-Backed Mortgages Launch in Partnership between Better Home & Finance and Coinbase

A new mortgage loan program is set to launch in the coming months, allowing borrowers to use their cryptocurrency holdings as collateral without selling them. Better Home & Finance and Coinbase are partnering on the initiative, which will enable homeowners to pledge Bitcoin or USDC as collateral for a mortgage.

The program aims to make it easier for crypto investors to access the housing market, while also providing a new pathway to homeownership. Borrowers who qualify for the loan will not need to sell their cryptocurrency holdings to fund their down payment, allowing them to retain potential future gains.

However, if borrowers fail to make mortgage payments for 60 days, their crypto collateral will be at risk of liquidation. The mortgages will be guaranteed by Fannie Mae, making them eligible for significantly lower interest rates compared to other crypto-backed loans.