Better Mortgage and Coinbase offer Bitcoin-backed down payment loans up to 250000 dollars
Better Mortgage and Coinbase announced on Aug. 26 the general availability of a token-backed conforming mortgage. Borrowers can apply for a loan structure that includes a standard first mortgage and a separate loan for the down payment, secured by pledged Bitcoin and a second lien on the property. Bitcoin has a 40% advance rate, meaning 250000 dollars of BTC can support a 100000 dollar down-payment loan. The advance rates may change without notice. Bitcoin is held in Better Mortgage's custodial account on Coinbase Prime, and borrowers cannot sell or transfer it during the pledge period. Payment delinquency, not Bitcoin price fluctuations, triggers liquidation after 60 days of missed payments. Borrowers must have a verified Coinbase account, meet Better's underwriting requirements, and have a minimum FICO score of 680. The program may be limited to certain states.
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