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Crypto for a home? Coinbase brings token-backed down payments to ...
- On Thursday, Coinbase and Better Home & Finance announced crypto-backed loans allowing homebuyers to pledge Bitcoin or USDC as collateral for down payments, marking one of the most ambitious attempts to adapt digital assets for mainstream finance.
- Better founder Vishal Garg noted that 41% of American families cannot afford down payments despite having savings elsewhere, while elevated borrowing costs have pushed the median first-time buyer age to 40 from 32 in 2000.
- Homebuyers can avoid selling crypto and incurring capital gains taxes; for example, someone buying a $400,000 property would avoid liquidating $40,000 in assets, and Bitcoin price drops trigger no margin calls unless payments are 60 days delinquent.
- Coinbase's Mark Troianovski, head of consumer and platform business development, said the product gives people access to housing similar to how private bankers serve wealthy customers by allowing loans against assets rather than forced liquidation.
- The dual-loan structure introduces additional financial complexity and leverage risk for already-stretched homebuyers, with borrowers essentially wagering that preserving crypto exposure justifies taking on a second major financial commitment alongside a mortgage.
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Coinbase, Fannie Mae To Introduce Crypto-Backed Mortgages - Coinbase Global (NASDAQ:COIN)
Fannie Mae will accept crypto-backed mortgages for the first time through a new product from Better Home & Finance and Coinbase (NASDAQ:COIN) that lets home buyers pledge Bitcoin (CRYPTO: BTC) or USDC (CRYPTO: USDC) as collateral. How The Product Works Home buyers get a traditional 15- or 30-year Fannie-backed mortgage from Better, then take out a separate loan backed by either Bitcoin or USDC to cover the down payment, The Wall Street Journal r…
·New York, United States
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Coverage Details
Total News Sources26
Leaning Left1Leaning Right1Center6Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
13%
C 75%
12%
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