Coinbase is powering Better’s new crypto-backed mortgages, enabling prospective homeowners to use the Bitcoin or USDC in their Coinbase accounts to fund their cash down payments.

These crypto-backed mortgages will be originated and serviced by Better, and will benefit from the same backing of Fannie Mae.

These mortgage types allow crypto holders to secure a home loan without needing to have 100% of the required cash upfront, and without being forced to liquidate their crypto holdings. By enabling borrowers to pledge their digital assets in the mortgage underwriting process, onchain wealth translates into real-world access – expanding the pathways to homeownership while preserving long-term investment positions.

Crypto-backed mortgages function just like a conventional home loan, with the same legal protections. The key difference is simple: instead of needing to come up with cash for the down payment, borrowers can pledge their crypto holdings as collateral for a separate loan that’s used to cover the down payment.

With this process, you get two loans at closing. The first is a standard Fannie Mae mortgage on the home. The second is used to fund your cash down payment, and is secured by the crypto that you pledge. One of the unique things about Better’s structure is that both loans share the same interest rate and amortization term, so you only have to manage one combined monthly payment.

To get started, one needs a Coinbase account and the Bitcoin or USDC they wish to pledge as collateral for the down payment loan.