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Better Mortgage

Skip the down payment. Leverage your shares.

Own your home.

The Better Startup Mortgage allows US-based Better employees to pledge vested, exercised shares as collateral. No need to cash in your shares to afford a down payment. You can own your shares and keep your cash.*
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Keep your cash and own your stock

  • Hold on to your shares

    Own your home and your shares. We’ll lock them until you’ve paid off your mortgage, or refinanced.

  • Grow with your company

    You’ll still own your pledged shares, so you can still profit from your company’s success. And if your shares decrease in value, no worries. The terms of your mortgage stay the same.

  • Avoid steep taxes

    Keep more of your hard earned money by leveraging your shares instead of selling them. Pledging your shares as collateral is not a taxable event. Selling them is.

  • Boost your buying power

    We count your unpledged vested, exercised shares towards your total assets. Traditional lenders don’t.

Here's how it works

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  • 01

    Do the math

    Use our calculator. Make sure this is right for you. Then go on and get pre-approved.

  • 02

    Get started

    Get pre-approved online in minutes, see your estimated share value, and get connected with your Home Advisor.

  • 03

    Validate your shares

    Your Home Advisor will confirm how many vested shares you have with Carta and their value as collateral.

  • 04

    Find your dream home

    Better Real Estate can find the right home for you and help you buy it with cash. Already have a place in mind? A Better Real Estate Agent can help you put together a winning offer.

  • 05

    Fine tune your loan

    While we’re processing your financials, our team will reach out to you to finalize your loan terms and get you ready for closing.

  • 06

    Close & pledge 
your shares

    At closing you’ll get your keys, and your shares will be locked as collateral. You won’t be able to sell your shares until the principal is paid in full or you refinance.

Frequently asked questions

  • What type of shares can be used as collateral?

    Currently the program is limited to exercised, vested equity shares of Better or Carta.
  • How many shares am I required to pledge as collateral?

    You must pledge shares with a collateral value of 20% of the home’s value. Better’s valuation of the shares will determine how many are required to reach 20%. To value shares, we start with the most recent 409A valuation or most recent CartaX transaction price. If the stock is public, we'll use the average price of the last 60 trading days, instead. We multiply that number by an advance percentage of 35% to account for the higher risk and limited liquidity of startup shares. For example, 10,000 vested shares valued at $20 each would have a collateral value of $70k toward a $350k home.
  • How do I get my pre-approval letter?

    Get started online and we'll connect you with a Home Advisor, who will send your customized pre-approval letter. They'll also be able to help you make any updates.
  • What are the restrictions on the shares I’ve used as collateral?

    Any shares used as collateral may not be sold, repledged, or become subject to any other liens until the loan is paid off, or the loan is refinanced.
  • What happens to other shares I have in addition to those I use as collateral?

    Better Mortgage places no restrictions on shares you own that aren't part of your Better Startup Mortgage pledge.
  • What happens if the issuing company goes public during the loan process or after closing?

    If a sponsoring company transitions its shares from private to public, then the public shares that are issued in place of the private shares you’ve pledged continue as collateral for the loan. Your loan will stay the same.
  • What happens to my shares if I default on my loan?

    If you default on your loan, Better Mortgage will take ownership of the shares you pledged.
See all FAQs here
Put that equity to work on your new home
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*Better Startup Mortgage Terms and Conditions apply, see here.

**Rate and APR Disclaimer: This is not a commitment to lend. Terms and conditions apply. Interest rates and annual percentage rates (APRs) are as of 11/3/2021 7:30 PM ET and are for informational purposes only. Mortgage rates are based on current market conditions and change daily. The advertised interest rate and APR ranges are based on the following assumptions: $1,000,000 loan amount; Better Startup Mortgage; borrower with FICO score of 700 or higher. The APR range listed above is an estimate and may not include all applicable fees. Your interest rate and APR may differ based on current market rates, property type, loan amount, loan-to-value ratio, credit score and other variables. Mortgage insurance may be required. If mortgage insurance is required, the mortgage insurance premium could increase the APR. Rates and terms are subject to change at any time without notice and are subject to state restrictions.

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