Coinbase and Better launch crypto-backed home loans, allowing Bitcoin holders to buy property without liquidating their holdings.

ChainCatcher news, Coinbase has announced a partnership with mortgage platform Better Home & Finance to launch a home loan product secured by Bitcoin or USDC, backed by Fannie Mae. Borrowers do not need to sell their crypto assets; they can use them as collateral to apply for an independent loan to cover the down payment, while also being approved for a standard mortgage, ultimately holding two loans with the same interest rate and repayment term, making combined monthly payments.

The product complies with Fannie Mae guidelines, with interest rates significantly lower than traditional crypto-secured loans. If the price of Bitcoin declines, the collateral will not face forced liquidation due to market fluctuations, and liquidation risk only arises after 60 days of overdue payments. Borrowers using USDC as collateral can offset part of the loan interest with the returns generated by the collateral.

Coinbase One members completing transactions through Better can receive a rebate on transaction fees, equivalent to 1% of the mortgage amount, up to a maximum of $10,000. The two companies stated that they plan to expand the eligible collateral range to include tokenized stocks and fixed-income assets in the future.