Better Mortgage has opened applications for a home loan that lets U.S. buyers use Bitcoin toward their deposit without selling it.

Coinbase provides custody for the Bitcoin, while Better handles the lending. The product has now moved beyond its earlier trial, but borrowers must provide more Bitcoin than the amount they receive.

Bitcoin can cover the deposit

A crypto-backed mortgage through Better involves two connected loans.

The first is a conventional mortgage that meets Fannie Mae’s requirements, while the second provides the cash needed for the deposit and is secured by the borrower’s Bitcoin. It also creates a second claim on the property.

According to details on Better’s product page, a buyer seeking a $100,000 deposit loan would need to pledge $250,000 in Bitcoin.

Better holds the Bitcoin in its account on Coinbase until the borrower repays or refinances the loan. Buyers can choose between 15-year and 30-year fixed terms and make one combined monthly payment.

The arrangement allows borrowers to keep holding their Bitcoin and avoid selling it during the purchase, but a large portion of the asset remains unavailable for the life of the loan. That structure may be relevant for buyers who want to preserve crypto exposure while taking on a conventional home loan, but it also ties up collateral in a way that is different from a standard cash deposit.

Better says Ethereum and Solana will be accepted later, but for now, only Bitcoin is accepted.

Falling Bitcoin prices will not trigger a sale

Better will not ask borrowers to add more Bitcoin if its price falls, and market movements alone will not trigger liquidation. However, missed payments carry a different risk.

Borrowers have 30 days to bring a late account up to date. If the delay reaches 60 days, Better may sell the pledged Bitcoin. Proceedings involving the home begin separately after 180 days, in line with Fannie Mae’s rules.

Coinbase One members who qualify can receive a lender credit worth 1% of the mortgage, capped at $10,000, and that credit can be used to cover closing costs and other fees.

The information provided by the companies is currently inconsistent, with Better saying applications are open while Coinbase’s support page still describes the mortgages as “coming soon.” That leaves the rollout status worth watching as the companies finalize how the product is presented to borrowers.

Better now accepts applications for mortgages using Bitcoin to fund the deposit. Borrowers must pledge Bitcoin worth 250% of the separate deposit loan.