Crypto Mortgages Are the New Way To Buy Second Homes
Buying a second home isn't so far out of reach, if you're invested in cryptocurrency.
Donald Trump, the self-proclaimed “crypto president,” has advocated for crypto-friendly policies since his inauguration.
He has vowed to make America “the crypto capital of the world,” appointing David Sacks as “crypto czar” and holding the inaugural White House Crypto Summit in March.
Meanwhile, Bitcoin, the largest cryptocurrency by market capitalization (at $1.9 trillion as of May 1), reached an all-time high of $109,114.88 on Inauguration Day, reflecting the increased enthusiasm and optimism surrounding crypto. The asset is up 66% in the past year and 15% in the past month, as of May 1.
All these factors are helping to make the space more mainstream, and Americans are exploring new ways to utilize digital assets—for instance, to purchase a home.
“Buying a home with bitcoin is still a niche market, but interest is growing,” said Josip Rupena, CEO of crypto-backed mortgage company Milo. As digital assets become more mainstream, more buyers are looking to use bitcoin to purchase real estate.
“While direct bitcoin transactions are less common, crypto mortgages are gaining traction as a way for investors to leverage their holdings without selling,” he added.
The future of cryptocurrency mortgages is here
One way to purchase a house with cryptocurrency is by using crypto-backed mortgages. While it remains niche, the bitcoin loan market is gaining traction, currently standing at $8.58 billion and expected to reach a whopping $45.27 billion by 2030, according to HFT Market Intelligence.
Rupena explained that buyers can use bitcoin as collateral to secure a mortgage instead of selling bitcoin. For instance, Milo, which accepts bitcoin and ethereum, offers 100% financing where no down payment is required, as long as the buyer pledges bitcoin equal to the property’s price.
The application process is also rapid, just a few minutes, and there is no credit check, as you qualify based on your cryptocurrency holdings.
How much crypto do you need to buy a house?
If you use Milo, the company offers a 100% crypto mortgage, with a standard 1:1 ratio, meaning you need to bring the full purchase price in crypto as collateral.
So if you’re buying a $500,000 home, you’d typically need about $500,000 in bitcoin or ethereum.
“If you want to put a down payment in cash, that can reduce how much crypto you need to contribute. We work with every client individually to figure out the right balance between crypto and cash, depending on their goals,” said Rupena.
Conversely, traditional banks and lenders do not recognize cryptocurrency the way they recognize cash or stocks. So even if you have millions in bitcoin, they usually won’t count it toward your qualification unless you sell it, season it in your bank account for months, and then apply. It’s slow, complicated, and leaves many crypto holders stuck. It's different when you work directly with a crypto mortgage lender.
“We evaluate your crypto directly as an asset," said Rupena. "You don't have to sell it, and you don't have to fit into a traditional box. If you meet our crypto guidelines, we can help you finance a home based on the real value you’ve built, not based on tax returns, pay stubs, or credit scores. It’s a simpler, faster, and much more logical process for crypto clients.
Direct crypto transactions
Another way to use cryptocurrency to buy a house is through direct transactions, as some sellers and platforms accept bitcoin as payment.
“The buyer transfers the equivalent amount to the seller’s wallet or converts it to cash via a crypto-friendly payment processor, which is then held in escrow,” said Rupena.
He added, however, that this method can result in capital gains tax and isn't widely regulated, so the process varies by transaction.
Step-by-step on how crypto can secure a mortgage
A crypto-backed mortgage works much like a traditional loan, but with bitcoin or stablecoin—a type of crypto pegged to an asset, generally fiat currency like the dollar, though they can also be pegged to a commodity like gold pledged as collateral.
Find a crypto-friendly lender
Johnny Schiro, president of RealOpen, a platform enabling crypto holders to purchase luxury real estate, said the first step is identifying a lender offering such mortgages. These include specialized fintech companies such as Milo, Ledn, Nexo, and Salt.
“Most lenders currently accept major coins (bitcoin, Ethereum, and stablecoin USDT) and require the crypto’s value to exceed the loan amount—often 150% of the loan—to buffer against price swings,” said Schiro.
The borrower must also meet standard checks, such as income verification, credit checks, Know-Your-Customer (KYC) vetting, and Anti-Money Laundering (AML) vetting, to ensure everything is aboveboard.
Application and collateral transfer
Once approved, the borrower posts their crypto as collateral, he said.
“This is akin to a down payment, except the buyer isn’t selling their crypto—they’re locking it up as security for the loan,” he added.
Loan underwriting and closing
Meanwhile, the lender appraises the property and finalizes loan terms just like a normal mortgage, added Schiro.
At closing, the lender funds the purchase in dollars (or stablecoins) to the seller, secured by a lien on the property and the crypto collateral.
“The seller can be paid in USD even though the buyer’s collateral was crypto—many deals use payment processors like BitPay to instantly convert crypto to USD for the seller’s comfort,” he added.
One advantage is that transactions can settle in a day instead of the usual 30- to 90-day escrow period, since cryptocurrency moves funds quickly, he said.
Repayment and custody of crypto
Homeowners can make mortgage payments in dollars or crypto, depending on the lender’s terms. The lender holds on to the crypto collateral, and the homeowner cannot use their crypto. However, owners can still benefit from price upside. And with bitcoin projected to reach new highs this year, it can be a win-win situation. For instance, Catherine Wood’s Ark Invest raised its 2030 bitcoin price target to a whopping $2.4 million in a bull scenario.
One caveat: Due to the inherent volatility of bitcoin and crypto in general, lenders might issue “margin calls.”
“If, say, bitcoin plunges and the collateral-to-loan value falls below a threshold, the lender may issue a margin call—requiring the borrower to add more crypto or cash as collateral,” said Schiro, adding that if the borrower can’t, the lender might liquidate some of the crypto to reduce risk.
“This is an extra layer of risk not present in traditional mortgages" where house value changes don’t prompt immediate collateral calls, he added.
Yet, this is appealing to some buyers, who have a significant risk tolerance and are not scared by price swings. That’s why Schiro said that Milo, for instance, “had thousands on its waitlist and closed $10 million in crypto mortgages in its first quarter.”
The company just surpassed $65 million in crypto home mortgages, Milo's Rupena added.
Who is this appealing to and what kind of homes are being purchased with crypto?
In June 2021, an anonymous buyer purchased a $22.5 million penthouse at Arte Surfside in Miami using cryptocurrency, marking the largest such deal at the time.
Milo’s Rupena stated that many clients are using crypto to enhance their lifestyle—purchasing second homes, vacation properties, or investment properties that represent a significant step up from their primary residence.
“Many have strong incomes, but traditional banks wouldn’t have qualified them for the full value of these homes,” he said.
With a crypto mortgage, they’re able to leverage their crypto to access properties that better reflect their true financial strength—homes they might not have been able to finance through a traditional loan process, he added.
He added that there is strong demand from crypto holders purchasing second homes and investment properties, primarily in states like Florida, California, and New York.
Florida continues to be the most popular destination, according to Rupena, with an average purchase price around $555,000, while California has seen the highest-value transactions, including purchases upward of $2.5 million, he said.
By: Yael Bizouati-KennedyI Realtor.com I May 3, 2025