Coinbase, Better launch first BTC-backed mortgage with nationwide rollout planned

Coinbase and mortgage lender Better Home & Finance have executed the first Fannie Mae-guaranteed mortgage backed by Bitcoin, The Block reported. The companies plan to launch the product nationwide for eligible borrowers this summer. Under the program, a borrower takes out a standard Fannie Mae mortgage for most of the home's value and covers the down payment with a separate crypto-backed loan. Both loans have the same interest rate and repayment schedule, allowing for a single monthly payment. However, the crypto-backed loan requires collateral worth approximately 2.5 times the borrowed amount for Bitcoin or 1.25 times for USDC. For example, a buyer of a $500,000 home could take out a $400,000 mortgage and cover the $100,000 down payment with a loan backed by roughly $250,000 in Bitcoin.