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 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 pretty similar to a conventional mortgage in that it enables you to purchase a home when you don’t have the required amount. However, a crypto mortgage uses cryptocurrencies as collateral. Therefore, a crypto mortgage can be a great option if you have more crypto wealth than traditional wealth.

How Does a Crypto Mortgage Work?

To take a crypto mortgage, your crypto collateral must be 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 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 collateral. However, Milo takes 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. However, the lender might check your credit profile, income, and the property’s value before approving your request. Interest rates vary depending on your crypto’s value.

Lenders let you repay the loan in monthly payments until you complete the full amount. The direct lender holds your crypto collateral during this period but releases it after completing payments.

You can make the monthly payments in fiat currency or cryptocurrency, depending on your direct lender. Also, note that you can’t stake or sell the held assets before repaying 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. However, the company quit the trial after a few months due to crypto’s incremental costs and regulatory uncertainty.

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 convert your crypto to cash, hence helping you avoid unintended tax liabilities.

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 are also processed faster than conventional ones since lenders approve loans within minutes. And the closing time takes about 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. Therefore, only take a crypto mortgage if you can handle that constant pressure.


Crypto mortgages can be a huge lifesaver as some crypto investors have already started benefiting from them. However, they are still new in the housing market, meaning you should approach them cautiously. 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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