Here's how this
" #Bitcoin Mortgage" works.
It's not exactly what you might think.
Probably more positive for NoCoiners
as they learn that #Bitcoin is money.
But us Muslims & most non Muslim Bitcoiners may not want it.
TLDR: You don't have to sell any #Bitcoin.
Rather, you're getting a #Bitcoin loan from
Better Home & Finance with Coinbase custody.
More...
If you need a 20% down-payment on a $1 mill house, you need $200k in cash and an $800k mortgage.
Fannie Mae writes the mortgage (the write most of the U.S.'s mortgages - yes money printing), but only if you meet all of the conventional, conforming loan requirements of Debt-to-income, W2 wages, credit scores, etc., etc.
So there's absolutely nothing new in needing to qualify in the fiat space with this program. This doesn't solve the difficulty some Bitcoiners have in qualifying.
But the $200k cash down payment comes from an over-collateralized loan (at about 200%) at Better.
So at today's $70k Bitcoin price, you'd need to put down 5.714 Bitcoin just for the down payment.
5.714 Bitcoin = $400k political currency units.
So that gives you the $200k needed for your down payment at 2-to-1.
Your 5.714 Bitcoin remains in custody at Coinbase for the life of the down-payment loan.
There's no tax event. You still legally own the Bitcoin (although Coinbase cryptographically owns it). Important to think about.
How do you get your Bitcoin back?
You have to either sell the house, refinance it (most will do this), or pay off the down-payment loan at Better.
The point is... these are really just TWO separate loans.
You have a standard mortgage which you must qualify for. Nothing changes here. Zip.
And then you have a separate Bitcoin loan that you take out for the down payment at essentially 2 to 1.
At least, however, there are no liquidation risks or top-ups required. Once the loan is initiated, your Bitcoin amount remains the same regardless of Bitcoin's price.
* There are a lot of options out there, and fortunately more coming online.
Not Only Does This Intensify The Supply Shock Of BTC, But I also see this as positive for those who don't own #Bitcoin (seeing that it can help get them a house).
However This is not necessarily attractive to actual Bitcoiners imo.
#HosKasi Adi
