Coinbase and Better Mortgage expanded a bitcoin mortgage product in the United States. The product includes a standard compliance mortgage loan and a portfolio of stand-alone loans supported by a bitcoin pledge, which is open to all United States borrowers.

Initial payment supported with bitcoin

At the heart of this arrangement is that currency users do not have to sell all bitcoin first to pay down payment. Better issues and manages two loans, while Coinbase provides a secure collateral hosting infrastructure.

According to the product design, the borrower may pledge bitcoin and replace a portion of the down payment that would otherwise have been in cash. It was reported, for example, that if the total purchase price was $0.5 million, the borrower could pledge $250,000 in bitcoin to support a down payment of $100,000.

At least 250%.

However, the actual amount available still depends on the lender's approval criteria and collateral requirements. Better states that the BTC value used as collateral is at least 250% of the amount of the down payment.

Bitcoin, which is collateral, will be stored in Better's escrow account in Coinbase Prime. The report mentions that the product does not have an additional bond notice triggered by day-to-day market fluctuations, unlike the usual encrypted mortgages.

Coinbase One Member Creditable

Borrowers are still liable for repayment of housing mortgages and this mortgage, respectively. That is, the pledge of bitcoin does not replace the mortgage obligation but provides additional support for down payment financing.

Better first launched this product in March of this year, when he was allowed to borrow hostages for bitcoin or USDC. Today, the loan product has been expanded to include new concessions for Coinbase One members.

  • 1% credit for eligible members
  • Single discount cap of $10,000
  • The product is now open to United States borrowers.

Encrypted mortgages are not entirely new. Ledn published a similar product in 2021, and Milo launched an American encrypted mortgage programme in 2022. Coinbase this time showed that mainstream encryption platforms are still promoting the integration of digital assets with traditional housing finance.