Coinbase Mortgage: What It Is and How Milo Compares

If you have searched "coinbase mortgage" lately, you are not alone. Since Better and Coinbase opened their crypto-backed mortgage to Coinbase One members in late August 2026, the term has become one of the most common ways crypto holders start researching how to buy a home without selling their coins.

The name is a little misleading, though. Coinbase does not lend you money for a house. The product is a mortgage from Better, a separate public mortgage lender, with Coinbase providing the membership channel and the crypto infrastructure behind it. Knowing who does what, and how the loan is actually built, makes it much easier to judge whether it fits your situation.

This guide explains what the Coinbase mortgage is, how its two-loan structure works, what it asks of borrowers, and how Milo's crypto mortgage compares for buyers weighing their options in 2026.

What the Coinbase mortgage actually is

The product is officially a "token-backed conforming mortgage" originated and serviced by Better. It was announced in March 2026, ran through a waitlist and early access period, and moved to general availability for Coinbase One members on August 26, 2026.

The core idea is simple. Instead of selling Bitcoin to fund a down payment, you pledge Bitcoin (or USDC) as collateral for a separate loan that covers the down payment. The rest of the purchase is financed with a standard conforming mortgage written to Fannie Mae guidelines.

A few details matter for anyone researching it:

• Better is the lender. Better originates and services both loans and holds pledged collateral in custody on the borrower's behalf.
• Coinbase One membership is part of the deal. General availability was announced for Coinbase One members, and approved members can receive a lender-funded closing cost credit of up to $10,000.
• Bitcoin and USDC are the supported assets. Other tokens are not part of the current product.

How the two-loan structure works

The Coinbase mortgage splits a home purchase into two loans:

1. A conforming first mortgage. This is a normal Fannie Mae-eligible loan, which means it follows conforming rules, including the conforming loan limit for your county.
2. A crypto-backed down payment loan. This second loan funds your down payment and is secured by the crypto you pledge.

Both loans are set up to share the same rate and amortization schedule, so the borrower makes one monthly payment.

The collateral requirement is where the math gets real. Published coverage of the product says borrowers must pledge Bitcoin worth at least 250 percent of the down payment loan, or USDC at a 1.25-to-1 ratio. On a $500,000 home with a $100,000 down payment, that means locking up roughly $250,000 in Bitcoin.

That Bitcoin is held in Better's custodial account on Coinbase Prime until the down payment loan is fully repaid or the mortgage is refinanced. For most people that is a long time. In September, CoinDesk also reported that Better may rehypothecate pledged Bitcoin during that period, which we covered in our piece on the hidden rehypothecation risk in the Better and Coinbase mortgage.

Better has said the product will not issue margin calls if Bitcoin falls in value. Lender-published materials indicate the collateral is at risk if a borrower falls significantly behind on payments, so it is worth reading the default terms closely before you apply.

What borrowers should weigh

The Coinbase mortgage solves a real problem: it lets a buyer avoid selling crypto, and the capital gains tax that can come with selling, just to fund a down payment. For a borrower who fits the conforming box, already has a Coinbase One membership, and is comfortable with a long lock-up, it can be a reasonable option.

The trade-offs to think through:

• Conforming limits. Because the first lien is a conforming loan, it is capped by conforming loan limits. Higher-priced homes may need a different approach.
• Traditional qualification. The first mortgage is underwritten under Fannie Mae guidelines, so income documentation and standard credit criteria still drive approval.
• Collateral efficiency. Pledging 250 percent of the down payment ties up a large share of your Bitcoin for a relatively small portion of the purchase price.
• Access to your coins. Collateral stays pledged until the down payment loan is paid off or refinanced, and reporting indicates it may be reused by the lender in the meantime.
• Regulatory dependence. The product relies on Fannie Mae and its regulator. In August 2026, seven U.S. senators asked the FHFA to scrutinize it, and we looked at what the FHFA's silence means for buyers.

How Milo's crypto mortgage compares

Milo also uses a two-loan structure, so the comparison is not "one loan versus two." The differences are in how you qualify, how much you can finance, and what happens to your crypto.

A few points worth spelling out:

Qualification. Milo helps clients qualify for a mortgage using their crypto assets, rather than relying only on W-2s and tax returns. That matters for founders, self-employed buyers, and anyone whose wealth sits mostly in crypto.

Collateral is optional. Posting crypto is a choice, not a requirement for every Milo client. Clients who do post collateral can finance up to 100 percent of the purchase price, keep all future appreciation, and avoid the capital gains tax that selling would trigger.

Margin calls exist, and that is a trade-off worth understanding. Milo's crypto-backed mortgage does include margin calls, and pledged crypto can be liquidated if its value falls below the required level. How much room you have depends on how much collateral you post: more collateral means more price buffer before a notice is triggered. For borrowers who want to keep their coins in their own control, Milo also offers a self-custody mortgage.

Track record. Milo is a licensed lender that has originated more than $100 million in crypto-backed mortgages, with crypto-backed home financing as its core business rather than one product among many.

If you want to see how all-in costs stack up across lenders, our guide to what a crypto-backed mortgage really costs and our full bitcoin-backed mortgage lender comparison go deeper.

Which option fits you

A simple way to think about it:

• The Coinbase mortgage may fit if you are already a Coinbase One member, your purchase fits within conforming limits, you qualify on traditional income documents, and you are comfortable pledging 2.5 times your down payment in Bitcoin for the long term.
• Milo may fit if your wealth is mostly in crypto, you are buying above conforming limits, you want the option of financing up to 100 percent, or you want your collateral held with a qualified custodian that does not lend it out.

Either way, ask any lender the same questions: Who holds my collateral? Can it be reused? What happens if prices fall? When do I get my coins back?

Frequently asked questions

Does Coinbase offer mortgages directly? No. The product is originated and serviced by Better. Coinbase provides the membership channel and crypto infrastructure.

How much Bitcoin do I need for the Coinbase mortgage? Published coverage says at least 250 percent of the down payment loan amount in Bitcoin, or 1.25 times in USDC.

Is a Coinbase mortgage the same as a crypto mortgage? It is one type of crypto mortgage. Other lenders, including Milo, structure crypto-backed home loans differently, with different qualification rules, collateral terms, and loan sizes.

Can I buy a home with crypto without selling it? Yes. Both the Coinbase mortgage and Milo let you pledge crypto instead of selling it, which can help you avoid a capital gains tax event.

The bottom line

The Coinbase mortgage brought crypto-backed home loans into the mainstream, and that is good for everyone who wants to buy a home without giving up their stack. But it is one product with one set of trade-offs: conforming limits, traditional underwriting, heavy collateral requirements, and a long lock-up.

If you want to explore a crypto mortgage built around how crypto holders actually hold their wealth, learn more at milo.io.

Eligibility requirements apply and all loans are subject to approval. Product details for third-party lenders are based on public reporting as of October 2026 and may change. This article is for general information and is not financial or tax advice.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.