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. Even though they have only been around for a short time, they have 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, how they work, and 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 house you just bought is then used as collateral for the loan, which means the lender can take it back if you don't pay back the 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, keep in mind that the higher the loan amount, the higher the monthly payments will most likely be. Depending on the lender you choose, the monthly payments and interest rates could also be different.

Some crypto mortgage lenders may require you to pay your monthly payments in fiat currency, while others may let you use a variety of cryptocurrencies. This allows you to pick the most convenient way to settle the loan over the agreed-upon 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

Before getting a mortgage, most mortgage companies ask crypto investors to convert their assets into real money. Converting crypto to fiat currency is a taxable event, so you may have to pay capital gains tax on 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 that when you pay back the loan, you will still own both the property you just bought and the cryptocurrency.

Allow Your Digital Assets to Continue Gaining Value

As aforementioned, crypto mortgage providers don’t force you to sell your crypto assets. So, this lets you keep your assets on the market and make sure you don't miss out on any possible gains while you have the loan. For instance, a crypto asset like Bitcoin has the great potential of shooting up in value as more people continue to adopt it. So, if you use the bitcoin you own as collateral to get a mortgage, it may be worth more when you pay off the loan.

Additionally, the value of the house you get might also have appreciated during the same period, resulting in 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 a good choice if you are not a citizen of the United States and haven't been able to build up your credit score enough to get 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 out 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 at 6.95%.


This is another platform that recently hit the headlines after announcing crypto mortgages of up to $3 million. Like Milo's, Figure’s crypto mortgages can last 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 out 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. So, if you use stablecoins as collateral, your assets will earn interest while the loan is in effect instead of just sitting there.

Your income could also help you pay less each month, which would make the loan even easier to handle. 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 hasn't said much about their Bitcoin mortgage, but they have said that it's for Canadian homebuyers right now. 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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