Coinbase and Better launch crypto mortgages, bitcoin holders can buy homes without having to liquidate

Coinbase and mortgage platform BetterHome Finance announced a partnership to launch a home loan product backed by Bitcoin or USDC, guaranteed by Fannie Mae. Borrowers do not need to sell crypto assets, but can use them as collateral to apply for a separate loan to pay the down payment. At the same time, they can be approved for a standard mortgage, and finally hold two loans with the same interest rate and repayment period, and make combined monthly repayments.<br /> The product conforms to FannieMae guidelines, with interest rates significantly lower than traditional crypto mortgages. If the price of bitcoin falls, collateral will not be forced to liquidate due to market fluctuations, and will only face liquidation risk after 60 days of overdue repayment. For borrowers holding USDC as collateral, the proceeds generated by the collateral can offset part of the loan interest.<br /> CoinbaseOne members complete transactions through Better and receive a transaction fee rebate of up to 1% of the mortgage amount and a maximum of US$10,000. The two companies said they plan to expand the scope of eligible collateral to tokenized stocks and fixed income assets in the future.