Key Highlights
- Better partnered with Coinbase to introduce a home financing solution accepting Bitcoin and USDC as collateral for down payments.
- According to the companies, borrowers retain their cryptocurrency investments and sidestep capital gains tax obligations.
- The financing arrangement adheres to Fannie Mae guidelines and caters to cryptocurrency investors pursuing homeownership.
- Better confirmed the program excludes margin call provisions during Bitcoin value declines.
- Crypto collateral liquidation occurs exclusively after payment defaults extending beyond 60 days.
A new mortgage offering from Better and Coinbase utilizes cryptocurrency as collateral while conforming to Fannie Mae requirements. Peter Schiff has openly challenged this approach, cautioning that it may increase default probability for financial institutions. This development emerges during a period when Bitcoin experiences significant price fluctuations under the $70,000 threshold.
Crypto Mortgage Initiative Receives Sharp Pushback
On March 26, Better and Coinbase unveiled their collaborative crypto-collateralized mortgage program. The partnership enables potential homeowners to pledge Bitcoin or USDC rather than liquidating digital assets for down payment requirements. The companies emphasized compliance with established Fannie Mae lending standards.
Better positions itself as a pioneer AI-powered mortgage provider. Company representatives noted the program addresses needs of countless Americans holding cryptocurrency without traditional cash reserves. The structure prevents taxable events since asset conversion isn’t required.
According to program details, Bitcoin price drops won’t trigger forced collateral sales. The companies clarified that liquidation procedures activate only following 60 consecutive days of missed payments. This framework aims to expand homeownership opportunities for digital asset investors.
Peter Schiff challenged this approach through social media commentary. He stated, “Allowing homebuyers to pledge Bitcoin as a down payment on a mortgage is a horrible idea.” He further noted the arrangement “substantially increases the risk for lenders.”
Allowing homebuyers to pledge Bitcoin as a down payment on a mortgage is a horrible idea, as it substantially increases the risk for lenders. If Bitcoin crashes, the down payment vanishes. That increases both the likelihood of default and the loss to the lender in foreclosure.
— Peter Schiff (@PeterSchiff) March 26, 2026
Schiff emphasized that financial institutions cannot access pledged Bitcoin until borrower default occurs. He observed, “If Bitcoin crashes, the down payment vanishes.” Subsequently, he characterized the program as “a scam to keep people from selling their Bitcoin to buy houses.”
Market Turbulence Frames Mortgage Controversy
The Bitcoin price recently dipped beneath $70,000, trending toward $69,000 in current trading activity. Performance metrics indicated a 24-hour decrease exceeding 2% and weekly losses approaching 3%. Nevertheless, monthly performance demonstrated nearly 6% appreciation.
Ethereum similarly experienced downward pressure, falling under $2,100 during this timeframe. General market weakness affected leading cryptocurrencies across the board. Bitcoin currently trades more than 45% beneath its October 2025 peak valuation.
Certain market observers characterize this phase as short-term investor capitulation. Michaël van de Poppe suggested these intervals frequently coincide with extended accumulation phases. He referenced inexperienced investors departing during market corrections.
Better and Coinbase introduced their mortgage product amid these fluctuating market conditions. The companies stress that participants maintain cryptocurrency market exposure. Schiff continues asserting that linking residential financing to unstable collateral increases institutional risk exposure.
