According to CoinMeta, American mortgage institution Better Mortgage and cryptocurrency exchange Coinbase have announced the launch of a Bitcoin-backed mortgage product that allows U.S. homebuyers to use Bitcoin as collateral for their down payment, without the need to sell their existing Bitcoin holdings. The product is now officially open for applications and consists of mortgages supported by Fannie Mae and standalone down payment loans. Borrowers are required to pledge Bitcoin with a value of at least 250% of the down payment amount. The pledged assets will be transferred to a custodial account held by Better at Coinbase Prime. Both loans feature the same interest rate and amortization period and are repaid through a single monthly payment. A decline in Bitcoin prices does not trigger additional margin calls or changes to the mortgage terms. However, if a borrower is overdue on payments for more than 60 days, Better has the option to liquidate the pledged Bitcoin. Applicants must be U.S. residents and hold a verified Coinbase account. Coinbase One members are also eligible for a 1% rebate of up to $10,000 to offset delivery costs and fees.