Better’s BTC-Backed Mortgage Needs 250% Bitcoin Collateral for Down Payment Loan

Better Mortgage and Coinbase have moved their Bitcoin-backed mortgage product out of pilot and into general availability, and the collateral math is now public: a homebuyer seeking a $100,000 down payment loan must pledge $250,000 in Bitcoin to secure it. That figure, a 250% collateral ratio, is confirmed on both Better’s product page and Coinbase’s Help Center, making it the one number in this story that carries dual sourcing.

Two Loans, One Payment, One Extra Lien

The structure pairs a conventional, Fannie Mae-conforming mortgage with a separate down payment loan secured entirely by the borrower’s Bitcoin. The pledged BTC moves into Better’s custodial account on Coinbase Prime and stays there until the mortgage is repaid or refinanced.

Both loans share the same interest rate and amortization schedule. Borrowers make a single combined monthly payment, but the down payment loan also places a second lien on the property, on top of the primary mortgage.

What Actually Triggers Liquidation

A falling Bitcoin price alone does not trigger a margin call or change the loan terms. That is confirmed on the Coinbase side of the documentation. What does trigger liquidation is payment behavior: if a borrower falls 60 days delinquent, Better can sell the pledged BTC to cover the shortfall.

Eligibility is narrower than a standard mortgage. Applicants must be US residents with a verified Coinbase account, and they still go through Better’s normal credit, income and underwriting checks. The 250% ratio is not a soft target; it is the entry requirement.

Details Confirmed by Only One Report

Two details in this story so far trace to a single outlet each, which is worth flagging rather than repeating as settled fact. AmbCrypto reported that borrowers can choose 15-year or 30-year fixed terms. Cointelegraph reported that Coinbase One members get a 1% rebate from Better toward closing costs, capped at $10,000.

Neither claim contradicts the other outlet’s account; they simply were not mentioned in both. That is a normal gap in fast-moving product launches, not a red flag, but it means these two figures should be treated as reported-by-one until a primary company statement independently confirms them.

From March Pilot to Wednesday’s Wider Launch

Better and Coinbase first unveiled this token-backed mortgage concept in March, running it through an early-access program before Wednesday’s rollout to the broader US market. The timing lines up with a wider regulatory push: Cointelegraph noted that in June 2025 the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to draft proposals for treating cryptocurrency held on regulated US exchanges as a countable asset in single-family mortgage risk assessment.

That FHFA detail also comes from a single report in the set reviewed here. It fits the broader direction of US housing-finance policy toward crypto collateral, but it should be read as context, not as a confirmed regulatory mandate tied directly to this product.

For now, the confirmed core of the story is narrow but concrete: a $250,000 BTC pledge unlocks a $100,000 down payment loan, held at Coinbase Prime, released on repayment or seized after 60 days of missed payments.

Sources

• ambcrypto.com
• cointelegraph.com