Better Mortgage Starts Accepting Bitcoin-Backed Home Loans

Better Mortgage has begun accepting applications for home loans backed by Bitcoin (BTC). Borrowers must provide $250,000 worth of BTC as collateral to secure a loan of $100,000. This loan product consists of a standard qualified mortgage and a separate loan for down payment financing, allowing borrowers to choose between fixed-rate terms of 15 or 30 years. The collateral ratio recognizes 40% of the BTC collateral value as the down payment, requiring collateral worth 250% of the down payment loan amount. Better does not require additional collateral based on BTC price fluctuations, but borrowers must normalize their accounts within 30 days of delinquency, and collateral BTC may be liquidated after 60 days of delinquency. The collateral BTC will be held in Better's Coinbase Prime custody account until the down payment loan is repaid. In the future, Ethereum (ETH) and Solana (SOL) may also be added as eligible collateral assets. Coinbase One members will receive a 1% closing cost credit on the loan amount.

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