Crypto-backed mortgages with Better let you pledge your crypto without selling it to fund the down payment on a home purchase. Better originates and services the mortgage, while Coinbase powers the experience that allows you to seamlessly pledge your crypto as collateral. Read on for details and apply at Better.
How crypto-backed mortgages work
Two loans, one payment: A crypto-backed mortgage pairs a Fannie Mae-backed home loan with a separate down payment loan collateralized by your crypto. Both loans share the same interest rate and amortization term, so you make one combined monthly payment.
Collateral: You can pledge BTC from your Coinbase account as collateral for the down payment loan. Bitcoin collateral must be worth at least 250% of the down payment loan amount. If Better approves your loan, you transfer your pledged crypto to Better's custodial account on Coinbase Prime, where Better holds your collateral until your mortgage is fully repaid or refinanced. Once you pay off your mortgage in full, Better returns 100% of the pledged amount, subject to loan terms.
Safe from market volatility: Day-to-day Bitcoin price changes don't affect your mortgage terms, and there are no margin calls based solely on BTC price movements. Better will liquidate your pledged crypto if you're 60 days delinquent on your loan payments, per the terms of your loans.
Coinbase One Rebates: Coinbase One members are eligible to receive a 1% rebate on home financing products like crypto-backed mortgages, standard mortgages, HELOCs, and refinances when using Better. Rebates are subject to caps and are used to cover closing costs and fees. All rebates are paid and provided by Better.
Who supports what:
Better handles the mortgage application, underwriting, closing, rebate and ongoing servicing (including payment issues and escrow questions) of your mortgage.
Contact Better: www.better.com
Email Better: hello@better.com
Call Better: 415-523-8837
Coinbase provides services related to your Coinbase account, including the ability to transfer the crypto used as collateral for your down payment loan to Better's account on Coinbase Prime. Coinbase does not originate or service the mortgage.
Eligibility and how to apply
Eligibility: To apply for a crypto-backed mortgage, make sure you:
Are a U.S. resident,
Have a verified Coinbase account in good standing,
Hold enough BTC in your Coinbase account to meet the collateral requirements for the down payment loan.
Application: Crypto-backed mortgages are originated by Better. To apply, go to Better. Better evaluates your creditworthiness, income, and other factors according to its underwriting policies.
Fraud and safety: Neither Better nor Coinbase will ever ask you to send crypto to an external wallet address or third party outside of the mortgage application and closing process provided by Better. If you receive suspicious messages about crypto-backed mortgages, use the official Coinbase Help Center to report scams and get support.
More details: For more information, read our blog post or Better's FAQ.
Troubleshooting
Coinbase One rebate: Only Coinbase One members are eligible for the rebate. If you're not a Coinbase One member, you can still get a crypto-backed mortgage, you just won't receive the rebate. If you are a Coinbase One member, make sure you clicked through the in-app redirect when you started your mortgage application. Skipping this step may make you ineligible for the rebate. Make sure you confirm with Better that you are receiving the rebate.
Transferring Crypto: Once you’re approved for the loan and you’re ready to pledge your crypto collateral you’ll authorize a secure connection between your Coinbase account and Better. This will allow Better to make the transfer for these funds. Once you authorize the secure connection, you do not need to open your Coinbase account to make the transfer.
Account in good standing: If your account information is out of date or you need to fix any restrictions: