Better Mortgage, Coinbase expand crypto-backed mortgages to Coinbase One members
Better Mortgage and Coinbase have made their token-backed conforming mortgage generally available to Coinbase One members, allowing eligible borrowers to pledge crypto as collateral instead of selling their holdings to fund a home purchase.
The product, first announced in March, uses a standard conforming first-lien mortgage structured under Fannie Mae guidelines. Bitcoin and USDC can be used as collateral toward the down payment.
Eligible Coinbase One members can also receive a lender credit equal to 1% of the mortgage value, capped at $10,000, which can be applied toward closing costs on mortgages, refinances and home equity lines of credit.
The companies said early demand has been strong, with a waitlist representing more than $260 million in projected loan volume. About 60% of respondents said they planned to buy a home within six months.
Better said 41% of its pre-approved customers meet income and credit requirements but do not have enough cash for a traditional down payment, highlighting the potential market for crypto-backed home financing.
Better Mortgage and Coinbase have made their token-backed conforming mortgage generally available to Coinbase One members, allowing eligible borrowers to pledge crypto as collateral instead of selling their holdings to fund a home purchase.
The product, first announced in March, uses a standard conforming first-lien mortgage structured under Fannie Mae guidelines. Bitcoin and USDC can be used as collateral toward the down payment.
Eligible Coinbase One members can also receive a lender credit equal to 1% of the mortgage value, capped at $10,000, which can be applied toward closing costs on mortgages, refinances and home equity lines of credit.
The companies said early demand has been strong, with a waitlist representing more than $260 million in projected loan volume. About 60% of respondents said they planned to buy a home within six months.
Better said 41% of its pre-approved customers meet income and credit requirements but do not have enough cash for a traditional down payment, highlighting the potential market for crypto-backed home financing.