US EditionCrypto 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.
59 Articles
59 Articles
Homebuyers can now use crypto as collateral for mortgage loans without selling their tokens
Prospective homebuyers who have invested in certain cryptocurrencies will be able to use their holdings as collateral to fund their down payment on a home as part of a new mortgage offering. Real estate services company Better Home & Finance Holding Co. plans to roll out the crypto-backed mortgage sometime in the next three months in a partnership with crypto trading platform Coinbase, the companies said in a press release Thursday. “Better was …
US Homebuyers Can Now Pledge Crypto Assets for a Fannie Mae-Backed Mortgage
The American dream of homeownership has officially collided with the digital gold rush as Fannie Mae begins backing mortgages secured by cryptocurrency assets. In a landmark shift for the US property market, the government-sponsored enterprise (GSE) has greenlit a partnership between digital lender Better Home and Finance and Coinbase. This move allows prospective buyers to pledge their Bitcoin or USDC holdings as collateral for a down payment r…
Need Collateral to Get a Mortgage? Check Your Crypto Wallet
As Dorothy Gale said in The Wizard of Oz, there’s no place like home. Today, thanks to the magic of crypto, she wouldn’t need enchanted slippers to get there. On Thursday, crypto platform Coinbase and mortgage company Better Home and Finance introduced a product that will let homebuyers use the digital coin as collateral for a Fannie Mae-backed mortgage. It marks the first crypto-backed mortgage that Fannie, which is overseen by the Federal Hous…
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