3 Reasons to Get a Crypto Loan for Real Estate

Cryptocurrencies seem to be opening new opportunities daily. This is pretty impressive, especially considering that crypto assets have not been around for that long.

Cryptocurrencies seem to be opening new opportunities daily. This is pretty impressive, especially considering that crypto assets have not been around for that long. And for the short time they have existed, they have undoubtedly given traditional finance a run for its money.

One of the latest inventions in the crypto space is crypto-backed mortgages. Yes, you can now get a mortgage using your crypto holdings. This might sound like a fantasy, but it’s actually happening.

This article will help you understand crypto mortgages and how they work and give some great reasons why you should consider them. Let’s dive right in.

So, What Are Crypto Mortgages and How Do They Work?

Before going any deeper, let us first define what a mortgage is. A mortgage refers to a loan you take to buy property, mostly a home. The newly acquired house then serves as collateral for the loan, meaning the lender can claim it if you default on your loan. That’s how a mortgage operates in the traditional real estate market.

What about in the crypto market? There is actually not much difference between a crypto mortgage and a traditional mortgage. The only major difference is that when taking a crypto mortgage, you usually use digital assets such as Bitcoin as collateral, not the bought property.

The required collateral amount is usually determined by how much you want to borrow. So, if the property you wish to buy costs $400,000, you might have to put up crypto collateral worth the same amount.

The crypto lender usually allows you to repay the loan in manageable monthly installments. However, note that the higher the loan amount, the bigger the monthly installments will likely be. The monthly installments and interest rates could also vary depending on the lender you choose.

Some crypto mortgage lenders might require you to make the monthly installments in fiat, while others let you use different cryptocurrencies. This allows you to pick the most convenient way to settle the loan over the agreed period.

Why Should You Get a Crypto-backed Mortgage?

Below are some great reasons why we think a crypto-backed mortgage might be a convenient option for you.

Avoid Selling Your Crypto Holdings

Most mortgage providers usually ask crypto investors to convert their assets into fiat before taking a mortgage. Converting crypto to fiat is a taxable event, so you could easily be forced to pay capital gains tax for that transaction. Fortunately, you no longer have to do so since there are now mortgage lenders that accept crypto collateral. So, you don’t have to worry about selling your crypto holdings to access a mortgage. That also means you will have both your newly owned property and crypto assets intact when you repay the loan.

Allow Your Digital Assets to Continue Gaining Value

As aforementioned, crypto mortgage providers don’t force you to sell your crypto assets. So this enables your assets to remain in the market, ensuring you don’t miss out on potential gains during the loan period. For instance, a crypto asset like Bitcoin has great potential of shooting in value as more people continue adopting crypto. Therefore, if you use your held Bitcoin as collateral to get a house, it could have gained immense value by the time you clear the loan.

Additionally, the value of the house you get might also have appreciated during the same period, thus double wins. This would not have been possible if you had sold the crypto for fiat to use as collateral.

Best Option If You Have Poor Credit Score

A credit score is one of the most crucial factors that traditional lenders use to determine whether to give you a mortgage. Therefore, if you have a bad credit score, you might easily lose the chance of getting a mortgage.

The good news is that some crypto loan platforms don’t check your credit score. So, if you have lots of crypto wealth and want to invest in real estate, you can easily do so even with the worst credit score. However, note that this does not apply to all crypto loan platforms as some like Figure usually check your credit score.

Crypto-backed mortgages could also be an excellent option if you are a foreign citizen and haven’t really managed to build your credit score to access a traditional mortgage. In that case, a crypto mortgage would allow you to still get the house you want without your credit score holding you back.

Where Can You Get a Crypto-backed Mortgage?

Below are some popular lenders that issue crypto mortgages:


Milo was the first company to offer crypto-backed mortgages. The platform allows you to take a mortgage worth even $5 million that you can repay over about 30 years. Plus, it lets you use different volatile crypto assets such as Bitcoin and Ethereum as collateral. However, if you prefer stablecoins, you could use Tether, USD Coin, or Gemini dollar.

Milo’s interest rates for crypto mortgages start from 6.95%.


This is another platform that recently hit the headlines after announcing its crypto mortgages of up to $3 million. Like Milo, Figure’s crypto mortgages can run for as long as 30 years. The platform accepts collateral in BTC and ETH. Their interest rate is around 6%.


This platform offers one of the most interesting crypto mortgages in the market. You can take a crypto mortgage worth even $5 million and repay it with an interest rate of about 5%.

The best thing about USDC.homes’ offer is that your crypto collateral is staked. Therefore, your collateralized assets earn interest during the loan term instead of just sitting there, especially if you use stablecoins as collateral.

Your earnings could also help to reduce the total monthly installment you owe, thus making the loan even more manageable. The platform allows you to use digital assets like ETH, BTC, and USDC as collateral.


This is another great platform that you can consider. Ledn has not provided many details about their Bitcoin mortgage, but they specify that it is currently meant for Canadian homebuyers. However, it is planning to open the offer to Americans.

You can use Ledn’s mortgage to buy a new home or finance an existing one. Also, the platform is currently offering a 2-year term for their crypto mortgages, after which they say the terms can be reassessed and possibly renewed if all goes well.


If you are a crypto investor who has held a crypto asset like Bitcoin for years, then a crypto mortgage fits you best. This is because it would allow you to own a home while still holding on to your crypto assets, thus easily sticking to your long-term hodling plan.

If you have not been in the crypto space for long, we also hope you have seen the potential benefits of a crypto mortgage. However, remember that, like everything in crypto, this also involves some risks, such as your crypto losing some value during the loan term. Therefore, consider that before taking a crypto loan for real estate.


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