Coinbase Moves Bitcoin Into Mortgage Territory as the US Home Market Stumbles

• Coinbase Bitcoin mortgage brings BTC into home financing, allowing eligible borrowers to use Bitcoin as collateral for a separate down payment loan
• The US housing market is losing momentum, with new home sales falling 10.5% in July as high mortgage rates continue to weigh on buyers
• The new financing route could give eligible Bitcoin holders another option to fund a home purchase without immediately selling their BTC

The Coinbase Bitcoin mortgage push is the latest development in the US housing market domain. As homebuyers continue to struggle while purchasing a new home, Coinbase, in collaboration with Better, is offering a new way for eligible Bitcoin holders to use their BTC as collateral for a separate down payment loan alongside a standard Fannie Mae backed mortgage to purchase new homes. This development has arrived at a time when the US housing market has become extremely complex, making purchasing new homes a difficult task.

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Coinbase Brings Bitcoin Into Home Financing

Coinbase, in his recent announcement, has partnered with Better to roll out Bitcoin-backed mortgages. The development is backed by Fannie Mae. The scheme is especially useful for Bitcoin holders. Instead of selling their Bitcoin to buy home, eligible borrowers can pledge their Bitcoin as collateral. This will help borrowers use their BTC as collateral for a separate down payment loan while taking a standard home mortgage.

The structure is different from a typical crypto loan. Buyers will also receive a standard home mortgage alongside a separate down payment loan secured by their Bitcoin. Coinbase’s Bitcoin mortgage is unique in that it helps borrowers pledge their BTC in a safe manner.

If they keep making payments, fluctuations in Bitcoin’s price will not trigger margin calls or require additional collateral. However, the pledged Bitcoin can be liquidated if the borrower becomes 60 days delinquent on payments. As stated by Coinbase:

“Day-to-day Bitcoin price changes don’t affect your mortgage terms, and there are no margin calls based solely on BTC price movements. Better will liquidate your pledged crypto if you’re 60 days delinquent on your loan payments, per the terms of your loans.”

The introduction of Coinbase Bitcoin Mortgage is the latest expansion ordeal of the firm. The company is trying its best to deliver diverse options for crypto usage. This development helps expand Bitcoin use cases by bringing it into the traditional financial and real estate trading domain.

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The US House Market Is Losing Momentum

The Coinbase Bitcoin mortgage ordeal has arrived at a time when the US House market is weakening rapidly. Per the latest post by the Kobiessi letter, the US housing demand is collapsing as US new home sale data has declined by 10.5% MoM in July.

“US new home sales fell -10.5% MoM in July, to 607,000 units, the lowest in 6 months and far worse than the -1.4% decline expected. Excluding January 2026, the current figure is the lowest level since November 2022. New home sales have now fallen in 3 of the last 4 months and are down -6.3% YoY. The Midwest was hit hardest, with sales plunging -42.7% MoM to 43,000, the lowest level since 2012. At the same time, sales in the South, the nation’s biggest homebuying region, accounting for more than 60% of the total, fell -13.0% to 383,000, the 2nd-lowest level since January.”

The data further adds that the 30-year mortgage rates have also risen by 6.81%, according to the Kobeissi Letter, making it difficult for Americans to draw out mortgages.

While the demand has weakened drastically, the Coinbase Bitcoin mortgage scheme can be particularly useful here. The diversity of bringing in crypto into the domain may help benefit eligible Americans without having to immediately sell their BTC investment to purchase a new home.

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