Coinbase has partnered with Better Home & Finance to introduce a new mortgage structure that allows borrowers to use crypto to help fund their down payments.
Under the model, eligible homebuyers can pledge digital assets like Bitcoin or USDC held in their Coinbase accounts as collateral for a separate loan. The funds from that loan are then used to cover the cash down payment on a standard mortgage backed by Fannie Mae.
The main mortgage remains a traditional home loan, while Better handles loan origination and servicing.
The structure lets borrowers keep their crypto holdings instead of selling them, while still accessing funds needed to buy a home. However, the pledged assets are locked and cannot be traded during the loan period.
The move reflects growing efforts to integrate crypto into the US housing market, as regulators and lenders explore ways to include digital assets in mortgage financing.
Still, the model adds new risks, including exposure to crypto price swings and additional debt tied to the down payment loan.
Featured image from: cointelegraph.com