Better Home and Coinbase Launch Crypto-Backed Mortgage Program

Better Home and Finance and Coinbase have launched a new mortgage program that allows homebuyers to use Bitcoin or USDC as collateral for a down payment, rather than converting their crypto to cash first.

Eligible borrowers receive two loans. The first is a conforming Fannie Mae mortgage for the home purchase. The second is a separate loan secured by the crypto collateral for the down payment. Better holds the crypto through Coinbase until the loan is repaid.

Mortgages that follow Fannie Mae guidelines qualify for significantly lower interest rates than other crypto-backed loan products currently on the market.

Fannie Mae's involvement is a notable development. Previously, lenders could not count crypto holdings as assets unless they had been converted to cash. The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to propose how crypto could be treated as a reserve asset in loan risk assessments.

The program targets the 52 million Americans who own digital assets and want to use them without selling. Crypto use in home purchases remains low overall. Only 1% of buyers between July 2024 and June 2025 used proceeds from crypto sales for a down payment.

The collateralization ratio is steep. A homebuyer needs $100,000 in Bitcoin to receive $40,000 in down payment credit. If payments fall 60 days delinquent, Better can liquidate the pledged crypto.

Financial advisors caution that for most buyers, traditional down payment methods remain more practical. The program is most accessible to those with substantial crypto holdings who want to preserve their positions while still buying a home.