Borrowers can now use $250k in Bitcoin for a house down payment without margin calls, but one trap remains
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Better Mortgage and Coinbase announced on Aug. 26 that Better's token-backed conforming mortgage had reached general availability.
Key facts
In the company's example, $250,000 of BTC supports a $100,000 down-payment loan
Bitcoin is +0.56% over the past 24 hours and currently sits at rank # 1 by market cap
Under Better's current product terms, Bitcoin carries a 40% advance rate, equal to a 250% collateral requirement
Better Mortgage and Coinbase announced on Aug. 26 that Better's token-backed conforming mortgage had reached general availability
Summary
01 Better pairs a conforming mortgage with a Bitcoin-backed loan for the down payment. 02 Bitcoin price moves alone do not trigger margin calls under Better’s current public terms. 03 Sixty days of payment delinquency can allow Better to liquidate pledged Bitcoin. The structure does not use Bitcoin to secure the primary mortgage.