Bitcoin Mortgages Let Buyers Keep Their Crypto – and Debt

Better and Coinbase announced in March and made generally available in August a mortgage product that pairs a conforming Fannie Mae mortgage with a second loan, secured by pledged Bitcoin and a second lien, to fund the down payment. A buyer took a $130,000 Bitcoin-backed loan alongside a conventional mortgage and pledged $325,000 of Bitcoin. Better said pre-applications reached $360 million in requested loan volume, above its $260 million projection. The pledged Bitcoin does not help borrowers qualify for the main mortgage; Better originates both loans, Coinbase is only custodian and technology provider, and Better said the collateral stays locked until the conventional mortgage is repaid or refinanced.