A mortgage product has been launched that allows U.S. homebuyers to use bitcoin to fund a down payment without selling it.

On Aug. 26 local time, blockchain media outlet Cointelegraph reported that Better Mortgage, a unit of home finance company Better Home Finance, and Coinbase opened to retail customers a home loan product that provides a down payment loan backed by bitcoin.

The product combines a Fannie Mae-guaranteed mortgage with a bitcoin-backed down payment loan. Borrowers must pledge bitcoin equal to at least 250 percent of the down payment loan amount. The bitcoin posted as collateral is transferred to a Better custodial account within Coinbase Prime.

The loan structure is also designed differently from a typical mortgage. Coinbase said the two loans carry the same interest rate and the same repayment period, and borrowers need to make one monthly payment. Borrowers can get back the bitcoin posted as collateral after fully repaying or refinancing the mortgage, in line with the loan terms.

Even if the bitcoin price falls, there will be no margin call for additional collateral or changes to the mortgage terms. If a borrower is delinquent for more than 60 days, Better can liquidate the collateral bitcoin.

The product is available to U.S. residents who have a verified Coinbase account. Borrowers must also meet Better's standard underwriting criteria, including creditworthiness and income. Coinbase One members can receive up to $10,000, about 14 million won, in 1 percent cashback, and can use it for transaction costs and fees.

The move comes as the U.S. home finance market seeks to reflect digital assets as qualifying assets in underwriting. The Federal Housing Finance Agency in June 2025 directed Fannie Mae and Freddie Mac to develop a plan to assess cryptocurrencies held on centralized exchanges under U.S. regulation as assets in single-family mortgage risk assessments. It told them to allow consideration of such holdings without first converting them into dollars, while also proposing safeguards to mitigate price volatility risks.

Other lenders are moving in a similar direction. Mortgage originator and servicer Newrez said in January it would recognize some cryptocurrency holdings in mortgage underwriting, including for home purchases and refinancing, and said it would begin applying the change from February.

There is also a market backdrop. U.S. home prices have stayed at high levels, increasing the burden of saving for a down payment. According to figures compiled by the Federal Reserve Bank of St. Louis using data from the U.S. Census Bureau and the Department of Housing and Urban Development, the median sales price for new homes in the United States in 2026 is around $400,000, about 550 million won. The median price has eased somewhat since 2022, but remains in a historically high range.

As a result, attempts to incorporate bitcoin into home purchase financing without cashing it out may increase. Actual use is expected to be limited because borrowers must meet a high collateral ratio, liquidation terms in case of delinquency, and existing credit screening standards.