Summary
- Crypto mortgages are evolving, both in terms of how cryptocurrencies are used and the range of lenders becoming involved.
- They offer a number of advantages, from keeping crypto assets intact to avoiding taxable events and providing greater flexibility for international property purchases.
- Although these products are relatively new, one of the first providers, Milo, announced in early 2026 that it had managed more than $100 million in crypto mortgages to date.
- For more articles explaining industry concepts and trends, see our Explainers page.
A first for crypto mortgages
In June 2026, a couple from Michigan purchased a home without cash. Instead, they used their bitcoin holdings as collateral for their down payment.
It has been possible to use the proceeds from selling crypto to help fund a home purchase for several years. What made this transaction different was that existing crypto holdings were used as collateral (rather than having to be sold), and the involvement of government-backed mortgage buyer, Fannie Mae.
How crypto mortgages work
Essentially, to fund the home purchase, the Michigan couple had to take out two loans, one backed by their crypto assets, which covered the down payment on the property, and the other covering the remainder of the property’s cost.
Three companies were involved, Better Home & Finance, in association with CCI member, Coinbase, and Fannie Mae, the former two covering the crypto element, the third, the traditional mortgage part.
The couple did not need to sell their bitcoin, and as a result, have not only kept their crypto assets intact, but also avoided triggering capital gains tax.
Under Better Home & Finance’s terms, borrowers must pledge crypto assets worth more than the loan amount. For example, to cover a $100,000 down payment, $250,000 worth of bitcoin is required. This is designed to cover the possibility of a decline in the value of the digital assets.
The down payment loan has to be paid off in full before the crypto assets are returned. Regular payments are made on both loans, and as long as payments remain current, the loan terms won’t change (even if the value of the crypto fluctuates). If a payment is not made for 60 days or more, the crypto assets are liquidated to cover the loans. At 180 days, Better is in a position to begin foreclosure proceedings.
What makes this different from previous crypto mortgages?
This is the first time that Fannie Mae or a company of a similar stature has taken these types of loans and treated them as qualifying mortgage collateral. Whether this is the start of a trend is debatable but it represents a significant step for crypto’s real-world utility.
The key point is that homebuyers can fund their down payment without having to liquidate their digital assets. Notably, the mortgage remains conventional, with Coinbase and Better’s product built on the existing financing framework rather than creating an entirely new, crypto-based mortgage product or system.
Other types of crypto mortgages
Fintech company Milo has been offering crypto mortgages since 2022. It offers up to 100% financing on home purchases, bypassing the need for any cash down payment, and again, avoiding a taxable event.
Borrowers use the value of their crypto assets as collateral. If these fall considerably (usually below 65% of their value at the time at which the loan was taken out), the borrower may be required to add more crypto assets as collateral or reduce the balance of their loan. If the price of bitcoin rises, the borrower can take out some of their locked-up crypto.
The assets are pledged and transferred to a regulated custodian, such as Coinbase. Milo then releases the loan amount in US dollars, and repayments are made in dollars.
Milo also offers a self-custody crypto mortgage. This allows borrowers to maintain possession of their bitcoin (rather than transferring them to a custodian) and still qualify for financing.
The advantages of these mortgages
Beyond the obvious advantage of using cryptocurrencies as collateral, flexible loans allow borrowers to use their crypto funds for other investments.
Crypto mortgages are available internationally, and benefit from crypto’s speed and ease of and cross-border transfers. Reflecting this, they can – depending on lender and jurisdiction – be used for cross-border purchases, offering flexibility to international borrowers.
There are few constraints on the types of property that can be bought using a crypto-backed mortgage.
And their drawbacks
Crypto mortgages remain small in scale. In part, this reflects the fact that there is only a relatively small pool of individuals who have the crypto assets to fund a mortgage, and are prepared to effectively lock up these funds for the period of the loan.
Few lenders will consider crypto-sourced deposits. Instead, they typically require the borrower to sell their crypto and convert it into the requisite fiat currency, much like individuals sell stocks to generate the funds for a deposit. Even then, lenders in many countries have anti-money laundering (AML) criteria they have to meet, and will want evidence of how the crypto has been acquired, how it’s been sold, and evidence that any applicable taxes have been paid on profits.
A history of crypto mortgages
Financial institutions have shown interest in the idea of crypto mortgages since 2021. That year, in January, United Wholesale Mortgage announced it would be the first US lender to accept cryptocurrency for mortgage payments. Ultimately, the product was canceled, reportedly because of costs and regulatory uncertainty.
The same year, UK AML firm Coadjute, announced plans to develop a stablecoin linked to the British pound, which would be used solely to transfer funds for home purchases. It is unclear if this ever developed beyond the launch, but the concept offers a case study in blockchain utility.
Once the parties were ready to complete, the funds would be locked into the accounts of the borrower and seller, at which point Coadjute would issue stablecoins that represent the transaction on its blockchain ledger. Ahead of the completion date, the stablecoins would be allocated to the parties, and converted back into sterling on completion. The system was designed to minimize paperwork and avoid traditional banking delays.
Milo launched its collateral-based mortgage in February 2022, offering 30-year mortgages in exchange for the equivalent value in crypto assets. Another large player in this sector in the US is Figure, a fintech that uses blockchain technology to automate loan processes. It is best known for its home equity lines of credit (HELOCs), but also offers crypto mortgages.
Elsewhere, a number of major UK banks accept mortgage deposits from crypto sales, including Barclays, Halifax and NatWest, as well as a number of smaller ones, such as Bluestone Mortgages, Tandem Bank and Pepper Money.
It’s become possible to use crypto to fund monthly interest and mortgage repayments, but there are very few lenders and real estate companies who accept this. A homeowner could, however, convert crypto profits into the fiat currency to pay off part or all of a mortgage, albeit subject to AML and other traceability checks.
Outlook
Attitudes toward crypto mortgages have shifted noticeably and it’s definitely an evolving situation. Until now, using cryptocurrencies as a down payment or to fully finance a mortgage has been a relatively niche option, organized through specialized lenders and brokers.
It’s possible that in the wake of Fannie Mae’s decision, lenders might take a more unified approach, something that is all the more likely if crypto volatility stabilizes as the market matures.
