Better Mortgage and Coinbase announced on August 26 the general availability of a Bitcoin-backed conforming mortgage product. The structure pairs a standard Fannie Mae-compliant first mortgage with a separate down-payment loan secured by pledged Bitcoin at a 40% advance rate, allowing $250,000 in BTC to support a $100,000 down-payment loan. Unlike conventional crypto margin loans, daily Bitcoin price movements do not trigger margin calls under the current public terms. However, 60 days of payment delinquency can allow Better to liquidate the pledged Bitcoin, eliminating future upside and potentially creating a taxable event. Eligibility requires a minimum 680 FICO score, a verified Coinbase account, and residence in an eligible jurisdiction.
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