Coinbase launches crypto-backed mortgages with Better, offers $10K support for closing costs

Better Mortgage and Coinbase have launched general availability for a mortgage product that allows eligible borrowers to use crypto assets in the underwriting process without selling their holdings.

The mortgages are originated and serviced by Better and powered by Coinbase. Better said the loans are designed in accordance with Fannie Mae guidelines, making the first lien a standard conforming mortgage.

Coinbase One members approved for a Better loan can receive a rebate equal to 1% of the mortgage value, capped at $10,000. The rebate is applied as a lender credit toward closing costs.

The companies are also extending the 1% rebate across Better’s other eligible financing products, including standard mortgages, home equity lines of credit and refinances.

The broader rollout follows early demand for the companies’ original crypto backed mortgage offering.

After opening a waitlist in June, Better and Coinbase said 76% of respondents were already Coinbase One members and 60% planned to purchase a home within six months.

The waitlist represented more than $260 million in projected loan volume before the product became generally available.

Better said the offering is aimed at borrowers whose wealth is increasingly held in digital assets. Eligible Coinbase One members can pledge crypto as part of the mortgage underwriting process while maintaining their investment positions.

The expanded offer became available on August 12 to Coinbase One members applying for eligible Better mortgage products.