September 24, 2022

September 22, 2022 13 Min Read
At DeFi Rate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners.
At DeFi Rate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners.
Getting a home mortgage backed by your cryptocurrency assets is now possible. We will let you know exactly how to get a crypto mortgage as well as the benefits/drawbacks.
A crypto mortgage is a type of mortgage in which you use your crypto holdings as collateral. As long as you repay the mortgage loan on the agreed terms, you'll get back your crypto assets at the end of the loan term.
Crypto mortgages work similarly to traditional mortgages. You offer your crypto assets as collateral, and the lender will loan you up to 100% of its value to purchase a home, often with no down payment required.
Different lenders offer different interest rates, which can fluctuate depending on the value of your crypto collateral relative to the loan amount. Having sufficient crypto assets is the main criterion for approval, but lenders also usually look at your credit history, income statement, and the home you intend to purchase.
Step 1: Determine how much you can borrow based on the value of your crypto holdings.
Step 2: Compare interest rates from different crypto mortgage lenders.
Step 3: Sign up for an account with your chosen lender and verify your identity.
Step 4: Apply for the crypto mortgage and provide the required documentation.
Step 5: If approved, deposit your collateral.
Step 6: Receive your funds.
Cryptocurrencies are valuable assets, but traditional mortgage lenders won't accept them as collateral. That means you'd need to sell some of your holdings for a down payment, which can come with considerable tax consequences.
Alternatively, instead of selling your crypto for cash, you can use it directly as collateral for a mortgage from select lenders. This way, you avoid cashing in your crypto early and losing out on potential future gains.
Crypto mortgages are beneficial for people who have a great deal of their investments parked in cryptocurrencies and not much in other assets.There are several reasons to choose a crypto mortgage over a conventional mortgage, including:
Most crypto lenders tend to accept the most widely-used coins like Bitcoin and Ethereum and stablecoins such as USDC and USDT. The reason is that there’s ample market liquidity for these coins, and they tend to be less volatile than obscure digital tokens.
If the value of your crypto holdings increases during the loan term, it means the collateral becomes worth more than it initially was, and you will benefit from the gains after repaying the mortgage.
On the other hand, if the value of your crypto assets slumps, you'll be required to add more assets as collateral to make up for the difference, assets that you can’t access without repaying the loan. If you refuse to add more assets as collateral, the lender may seize and sell your existing asset to make up for the shortfall.
The recent growth wave in the crypto market has spawned a handful of companies offering crypto-backed mortgages. The most popular include Milo, Figure, Ledn, and USDC.homes.
Milo Credit was founded in 2019 to provide mortgages to global crypto consumers. The company provides mortgages backed by crypto assets– a minimum of $200,000 and a maximum of $5,000,000.
You need to meet Milo’s eligibility terms in order to secure a loan, which include:

Step 1: Visit the official Milo website and see what rate you qualify for.
Step 2: Click the Get started button and proceed to apply.

Step 3: Enter the address of the property you want to purchase to begin the application process– you’d need to create an account.
Step 4: Provide more details about the property you intend to purchase, including the purchase price, escrow deposit, expected rental income (if any), etc.
Step 5: Provide information for identification and verification, including your legal name, phone number, credit score, annual income, and value of crypto and non-crypto holdings. Milo will use this information to determine if you’re eligible for a mortgage.
Step 6: Secure your loan offer– append your signature to the loan documents.
Step 7: Validate your information.
Step 8: Deposit your collateral and receive the mortgage in cash in your specified bank account.
Figure is a well-known company that provides home equity lines of credit (HELOCs) based on blockchain technology. In March, it opened a waiting list for crypto-backed mortgages, promising up to $3 million of loans per customer collateralized by Bitcoin or Ethereum. It hasn’t launched this service to the public, so details are limited.
Figure says its crypto mortgages will be available to only U.S. residents in select states; Alabama, Arizona, California, Florida, Georgia, Nevada, and New Jersey.

Note that these features are what Figure promises and may not be what users end up getting.
For now, you can only provide your email address to join the waiting list.
Ledn is a well-known cryptocurrency investing platform. It offers a crypto-backed mortgage as a complementary service, but there’s a catch; it’s only available in Ontario, Canada. Users in other regions can only get on the waitlist, and Ledn promises that it’ll be available to all other Canadian residents and select American residents later this year.
Ledn’s primary eligibility requirement is having at least 130% of the estimated value of the property you intend to purchase in Bitcoin to post as collateral.

Step 1: Fill in your details on the application form on the Ledn website.
Step 2: Wait for a Ledn employee to contact you via your email or phone number regarding eligibility and how to proceed with the loan. Ledn is still in the early stages of offering a crypto mortgage, so a lot of steps in getting it are informal and don’t follow a standard procedure.
USDC.homes is a decentralized finance “DeFi” project that, as the name suggests, offers mortgages backed by the USDC stablecoin (plus ETH and BTC). For now, it’s only available to American residents in the state of Texas.
As a DeFi project, USDC.homes offers great flexibility– the only requirement is your crypto assets.
Step 1: Fill in your details in the application form on the USDC.homes website.
Step 2: Wait for a member of the USDC.homes team to contact you for a follow-up.
Here’s the breakdown of a hypothetical crypto mortgage of $500,000 with no down payment secured through Milo, with a standard interest rate of 6.95% and a 30-year term.
The formula for calculating mortgage monthly payments is M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1], where:
It gives M = 500,000 [ 0.0058(1 + 0.0058)^360 ] / [ (1 + 0.0058)^359-1]. To solve, calculate (1+.0058)^360 first. It gives 8. Then, solve for (1+0.0058)^359-1; it gives 8-1 =7.
Hence, the calculation becomes M = 500,000 [.0058(8)]/[7]. Solve the math within the brackets, and it becomes M = 500,000[0.662]. Taking this calculation, the final answer becomes $3,314 as your monthly payment.
Note that we approximated all numbers five spaces past the decimal point, so $3,314 won’t be the exact figure. Likewise, this calculation doesn’t factor in taxes and insurance premiums, which can vary depending on the property’s location. Milo also adjusts the interest rate depending on certain factors.
Crypto-backed mortgages are one of the latest innovations in the cryptocurrency industry that you can take advantage of. They work similarly to traditional mortgages but with crypto assets posted as collateral. Unlike traditional mortgages, they’re faster to get and often require no down payment or set monthly payment.
Crypto assets have significant potential to appreciate, and if you’re making that bet, it’s advisable to use your assets as collateral for a cash mortgage instead of selling them and incurring tax liabilities or missing out on potential gains. This way, if the value of your collateral increases, you can reclaim it after repaying the mortgage.
We’ve given you good examples of crypto mortgage providers and how you can apply through them.
Yes, you can get a mortgage by putting up cryptocurrency assets as collateral.
A crypto mortgage company is one that provides mortgages to customers secured by crypto assets.
Milo lets you apply for a loan of between $200,000 and $5 million by posting the equivalent amount in BTC, ETH, or USD as collateral.
It’s rare but possible to find a seller willing to receive payments in Bitcoin. Most sellers will demand fiat as payment. However, you can use your Bitcoin to secure a loan from crypto mortgage companies.
It depends on the platform, but you generally need between 100% and 200% of the amount you’re seeking as a mortgage.
Yes, Milo lets you refinance existing mortgage loans using cryptocurrency.
Yes, obtaining a crypto mortgage is usually faster and more convenient than getting a traditional mortgage. There’s identification and verification involved in crypto mortgages, but it’s not as stringent as with traditional mortgages.
Different lenders use different custodians to hold customers’ crypto collateral deposits. For instance, Milo holds deposits securely using Coinbase and Gemini.
What is a crypto mortgage?
How does a crypto-backed mortgage work?
Who would want to use a cryptocurrency mortgage?
What crypto assets do lenders accept for a crypto mortgage?
What happens when crypto assets change in value during the mortgage term?
Pros and cons of cryptocurrency mortgages
Where to get a crypto mortgage
Cons
USDC.homes crypto mortgage
Crypto mortgage rates
Crypto mortgage calculator example
Final thoughts on crypto mortgages
Frequently asked questions
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