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Crypto Mortgages: Your Comprehensive Guide

All you need to know about crypto mortgages and how they really work.

Crypto has finally entered the mortgage industry. So, you can now take out a mortgage using cryptocurrencies like Bitcoin? This service is pretty new, but some companies have already started offering it. You have probably been wondering whether crypto mortgages are legit and how they really work. Today’s article will explain all you need to know about them.

Before you get started, if you need a primer on how crypto loans work, here it is.

So, What’s a Crypto Mortgage?

A crypto mortgage is a lot like a regular mortgage in that it lets you buy a home even if you don't have enough money. However, a crypto mortgage uses cryptocurrencies as collateral. So, if you have more crypto wealth than traditional wealth, a crypto mortgage can be a great choice.

How Does a Crypto Mortgage Work?

To take out a crypto mortgage, your crypto collateral must be worth the same amount as the loan you want. Therefore, if you want to buy a $1,000,000 property, you must have crypto collateral worth $1,000,000. Fortunately, you don’t need a down payment to take out the mortgage.

Lenders offer varying loan amounts. For instance, Milo offers up to $5 million, while Figure’s offer reaches $20 million. Also, Figure only accepts ether and bitcoin as collateral. Milo, on the other hand, accepts even stablecoins.

A Bitcoin mortgage gives you a 30-year repayment term, which is pretty reasonable for most people. Also, a direct lender does not check your credit score to qualify you for a mortgage. All you need is the required crypto collateral. Before agreeing to your request, the lender might check your credit history, your income, and the value of the property. Interest rates vary depending on your crypto’s value.

Lenders let you repay the loan in monthly payments until you pay off the full amount. During this time, the direct lender will hold on to your cryptocollateral, but they will give it back to you when all payments are made.

You can make the monthly payments in fiat currency or cryptocurrency, depending on your direct lender. Also, you can't bet on or sell the assets you're holding before you pay back the loan.

Who Offers Crypto Loans for Real Estate

There are a few platforms offering crypto mortgages, and they use different lending terms. Milo is the first company to successfully start a crypto mortgage service for crypto investors in the United States. However, Milo isn’t the first to try this idea. United Wholesale Mortgage started a pilot program last year where investors were allowed to make their mortgage payments in cryptocurrencies. But after a few months, the company stopped the test because crypto was more expensive and the rules weren't clear.

Milo and Figure are the top lenders offering this service at the moment. But other lenders might soon join the industry due to the growing demand for Bitcoin mortgages.

Why You Should Get a Crypto Loan for Real Estate

A crypto mortgage enables you to access home credit without selling your digital assets. Therefore, you still own the crypto used as collateral. This allows your digital assets to gain more value during the loan term. The house might also increase in value during this period.

A crypto mortgage lets you buy a home using cryptocurrency. So, you don't have to turn your crypto into cash, which helps you avoid tax problems you didn't plan for.

If your crypto increases in value, you can withdraw the extra amount. Or, you could also leave it as collateral to receive a better interest rate.

Crypto mortgages can also be processed faster than regular mortgages because lenders can approve loans in minutes. And the closing process takes approximately three weeks.

Why You Shouldn’t Get a Crypto Loan for Real Estate

Most crypto loans demand crypto collateral. Since cryptocurrencies such as Bitcoin are usually volatile, they can easily lose value within a short period of time. If this happens, you must pay more collateral to maintain the 1:1 loan-to-value (LTV) ratio. And since crypto is always volatile, you might find yourself adding collateral quite often.

For instance, Milo liquidates your digital assets if their value drops to 30% of the borrowed amount and stores them in USD. So, get a crypto mortgage only if you can handle the constant pressure.


Crypto mortgages can be a huge lifesaver, as some crypto investors have already started benefiting from them. But they are still new to the housing market, so you should be careful with them. Fortunately, now you know what they really involve and the risks to watch out for. Therefore, we hope this article has helped you make a better investment decision.

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