Better Home and Coinbase Launch Crypto-Backed Mortgage for Bitcoin Holders

Homebuyers who hold cryptocurrency now have a new option for using it. Better Home and Finance and Coinbase announced a token-backed mortgage program that lets buyers pledge Bitcoin or USDC as collateral toward a down payment instead of putting up cash.

Here is how it works: eligible borrowers receive two loans at closing. The first is a conforming Fannie Mae mortgage on the home. The second is a separate loan secured by the pledged crypto to cover the down payment, similar to a piggyback loan. Better holds the crypto through Coinbase for the life of that loan and returns it once repaid. Because the mortgage follows Fannie Mae guidelines, it qualifies for significantly lower interest rates than other crypto-backed loan products.

The product targets the 52 million Americans who own digital assets and want to use them without liquidating. Only 1% of buyers who made a down payment between July 2024 and June 2025 used proceeds from selling crypto, according to a National Association of Realtors survey.

Fannie Mae's involvement is significant. Until now, lenders following Fannie and Freddie guidelines generally could not count crypto holdings unless converted to cash. The Federal Housing Finance Agency directed both agencies last June to develop a proposal for treating crypto as a reserve asset in single-family loan risk assessments.

The risks are real. The collateralization ratio is steep: $100,000 in Bitcoin yields only $40,000 in down payment credit. If a borrower goes 60 days delinquent on payments, Better can liquidate the pledged crypto to cover the loan. For most buyers, a traditional down payment approach will still make more sense.

Financial advisors recommend consulting a professional before considering a crypto-backed mortgage, given the volatility of digital assets and the complexity of the product.