Crypto for a home? Coinbase brings token-backed down payments to housing market
Coinbase is partnering with Fannie Mae-approved mortgage firm Better to offer crypto-backed mortgages, allowing homebuyers to use their digital assets as collateral for down payments. This new product enables borrowers to keep their assets intact and avoid taxable events, with the same protections and standards as traditional mortgages.
Coinbase and Better are introducing crypto-backed mortgages. Borrowers can pledge bitcoin or USDC as collateral for down payments. The mortgage is a conforming loan backed by Fannie Mae, with the same protections as traditional mortgages. Homebuyers can avoid selling assets and incurring capital gains. The product is aimed at regular homebuyers, not just high-end purchases. Rates will be higher than standard 30-year mortgages, but borrowers' collateral is only at risk of liquidation in case of a 60-day payment delinquency.
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