Coinbase, Better let homebuyers pledge $250k in Bitcoin for down payments

Homebuyers can pledge up to $250,000 in Bitcoin for a mortgage down payment without margin calls, after Better and Coinbase opened the product generally.

"By allowing Coinbase One members to pledge crypto as collateral without selling their holdings, we're opening a new path toward homeownership for a generation of borrowers whose wealth increasingly lives onchain," Ziggy Jonsson, chief technology officer at Better Mortgage, said.

The structure splits financing into two loans. A standard first-lien mortgage conforms to Fannie Mae guidelines, while a separate loan secured by pledged Bitcoin supplies the cash down payment. Both carry the same interest rate and amortization term, combined into one monthly payment. Bitcoin must be worth at least 250 percent of the down-payment loan — a $100,000 down payment on a $500,000 home requires roughly $250,000 of BTC, a 40 percent advance rate.

The trade-off is the trap. Day-to-day Bitcoin price moves do not trigger margin calls or forced selling, but 60 days of payment delinquency lets Better liquidate the pledged coins, eliminating future upside and creating a taxable event. The second lien also gives the lender another secured claim on the home.

No Margin Calls, But Delinquency Triggers Liquidation

The product's main difference from a conventional crypto margin loan is that a rising loan-to-value ratio does not prompt automatic liquidation. Delinquency begins the day after a missed payment, giving borrowers 30 days to bring the account current. If still delinquent at 60 days, Better may liquidate the pledged Bitcoin, according to program terms. The individual loan documents govern the borrower's obligations and Better's remedies.

Applicants need a verified Coinbase account, must satisfy Better's underwriting and conforming-loan requirements, and must purchase in an eligible jurisdiction. Program terms specify a minimum 680 FICO score and say the product may be limited to select states.

Crypto-Rich, Cash-Poor Buyers Drive $260 Million Waitlist

Better said 41 percent of its pre-approved customers meet income and credit requirements but lack cash for a traditional down payment. A waitlist opened in June represented more than $260 million in projected mortgage volume, with 76 percent of respondents already Coinbase One members and 60 percent planning to buy within six months. Coinbase One members approved for eligible financing receive a lender credit equal to 1 percent of the mortgage value, capped at $10,000.

The product follows the Federal Housing Finance Agency's June 2025 directive for Fannie Mae and Freddie Mac to consider cryptocurrency in single-family mortgage risk assessments. Newrez began recognizing Bitcoin, Ether, approved spot crypto ETFs and dollar-backed stablecoins in February 2026, though it still requires closing funds in dollars. Better and Coinbase instead turn Bitcoin directly into collateral.

Bitcoin traded up 0.66 percent over the past 24 hours, according to CryptoSlate data. The median price of a new US home was about $400,000 in 2026, while the median age of a first-time buyer reached 40 in 2025.

For Coinbase, the product extends cryptocurrency beyond trading into conventional consumer finance. For the mortgage industry, it tests whether digital wealth can fund housing without forcing holders to convert assets to cash first.

This article is for informational purposes only and does not constitute investment advice.