Coinbase and Better Close First Bitcoin-Backed Mortgage

Key facts

• Better and Coinbase closed the first Fannie Mae-backed mortgage collateralized by Bitcoin in the US.
• Homeowners can use Bitcoin holdings as collateral for down payments without liquidating crypto.
• Pledged crypto is held in Coinbase Prime custody and returned upon loan repayment.
• The product has no margin calls; collateral is only at risk if a borrower is 60 days delinquent.
• Bitcoin requires 250% collateral for the down payment loan, USDC requires 125%.

Better Home & Finance Holding Company and Coinbase have closed the first Fannie Mae-backed mortgage in the United States collateralized by Bitcoin. This allows homeowners to use their Bitcoin holdings for down payments without liquidating their positions or incurring immediate capital gains taxes. The product involves a conventional mortgage for the property and a second, privately financed loan secured by pledged Bitcoin or USDC for the down payment. Pledged crypto is held in Coinbase Prime custody and returned upon full loan repayment. The product has no margin calls; collateral is only at risk if a borrower is 60 days delinquent. Bitcoin requires collateral equal to 250% of the down payment loan, while USDC requires 125%. Better CEO Vishal Garg plans to expand eligible assets to include tokenized equities, fixed income, and other real estate assets. This offering targets buyers whose wealth is concentrated in digital assets, addressing the gap where 41% of pre-approved customers lack cash for a traditional down payment. The regulatory pathway was cleared by a June 2025 FHFA directive instructing Fannie Mae and Freddie Mac to recognize digital assets as eligible collateral. Eligible Coinbase One members may receive a rebate of 1% of the mortgage value, capped at $10,000.