mortgage
Milo Mortgage Review 2026: Buy a House Using Your BitcoinMilo Mortgage review 2026: Bitcoin-backed home loans without selling BTC. No income verification, higher rates, liquidation risk explained. Is it right for HODLers?
A Bitcoin-backed mortgage lets you use your Bitcoin as collateral to finance a home purchase — without selling your BTC. Instead of liquidating your stack to fund a down payment (and triggering a taxable event), you pledge Bitcoin as security for the loan. If Bitcoin goes up, you keep the upside. The trade-off: if Bitcoin drops hard enough, you could face a margin call. This guide explains how Bitcoin-backed mortgages work, which lenders offer them, and whether one makes sense for you.
What Is a Bitcoin-Backed Mortgage?
A Bitcoin-backed mortgage is a home loan where your Bitcoin holdings serve as collateral instead of — or in addition to — traditional income and asset documentation. There are two main structures:
1. Bitcoin as down payment / asset qualification Some lenders count your Bitcoin holdings as a qualifying asset for a conventional or jumbo mortgage. You still need income, but your BTC stack can satisfy the reserve and down payment requirements without you having to sell it first.
2. Bitcoin-collateralized mortgage (true crypto mortgage) You pledge Bitcoin directly as collateral. The lender holds your Bitcoin in custody (or a third-party custodian does), and the loan is secured against it. Milo and Ledn offer this structure. You do not sell your Bitcoin — it is locked up for the duration of the loan.
Both structures let you keep your Bitcoin exposure. The mechanics and risks differ significantly.
How Bitcoin-Collateralized Mortgages Work
Here is the typical process for a true Bitcoin-backed mortgage:
Step 1: Apply and get pre-qualified You provide details about the property, your Bitcoin holdings, and basic financial information. Some crypto mortgage lenders do not require proof of income at all — your Bitcoin collateral is the underwriting.
Step 2: LTV ratio determines loan size Lenders use a Loan-to-Value (LTV) ratio based on your Bitcoin. A typical LTV for a Bitcoin mortgage is 50%–70%. That means if you have $500,000 in Bitcoin, you can borrow $250,000–$350,000 against it.
Step 3: Bitcoin is transferred to custody Your pledged Bitcoin moves to the lender's custody (or a qualified custodian). You retain ownership but cannot spend or move the coins while they are pledged.
Step 4: Loan is funded You receive the mortgage funds in USD to purchase the property. You make monthly payments like any other mortgage.
Step 5: Margin calls if Bitcoin drops This is the critical risk. If Bitcoin's price falls enough that your collateral drops below the required LTV threshold, you will receive a margin call. You must either:
- Add more Bitcoin to restore the LTV, or
- Make a partial loan payment to reduce the balance, or
- In extreme cases, the lender liquidates some of your Bitcoin
Top Bitcoin Mortgage Lenders in 2026
Milo (/mortgage/milo-mortgage)
Milo pioneered the Bitcoin-backed mortgage in the US. Key features:
- 30-year fixed-rate mortgages
- No income verification required for Bitcoin-collateralized loans
- LTV up to 100% of property value (with sufficient Bitcoin collateral)
- Available to US citizens and foreign nationals
- Bitcoin held in institutional custody
- Loans from $150,000 to $5,000,000
Milo is the go-to lender if you want a true Bitcoin-collateralized mortgage without income documentation.
Ledn (/mortgage/ledn-mortgage)
Ledn offers Bitcoin-backed mortgages with institutional-grade custody. Features:
- Available in select US states and internationally
- Bitcoin held with Coinbase Custody or similar tier-1 custodians
- Transparent on-chain collateral verification
- Competitive rates for crypto-native borrowers
Unchained (/mortgage/unchained-mortgage)
Unchained offers Bitcoin-backed loans that can be used for real estate purchases. Their structure uses collaborative custody (multisig), meaning you retain partial key control over your collateral — a meaningful security improvement over lenders who take full custody.
Griffin Funding (/mortgage/griffin-funding-mortgage)
Griffin Funding specializes in non-QM mortgages and counts crypto assets as qualifying documentation. If you have substantial Bitcoin holdings but non-traditional income, Griffin can help you qualify using a bank statement or asset-based approach.
Guaranteed Rate (/mortgage/guaranteed-rate)
Guaranteed Rate offers a Jumbo Crypto Mortgage program for high-net-worth borrowers. Bitcoin holdings can satisfy reserve requirements for loans above the conforming limit ($766,550 in 2026).
Better Mortgage (/mortgage/better-mortgage)
Better offers a Crypto Down Payment program that lets you use crypto holdings — including Bitcoin — to document the source of your down payment funds. You still sell the crypto to fund the down payment, but the program streamlines the compliance paperwork.
Quontic Bank (/mortgage/quontic-bitcoin-mortgage)
Quontic is a digital bank that accepts Bitcoin as a qualifying asset for non-QM mortgages. Useful for borrowers who do not have traditional W-2 income.
Rocket Mortgage (/mortgage/rocket-mortgage)
Rocket Mortgage ran a Bitcoin payment pilot that let borrowers make monthly payments in Bitcoin. As of 2026, the program's status varies — check directly with Rocket for current availability.
Bitcoin Mortgage vs Traditional Mortgage: Key Differences
| Factor | Bitcoin-Backed Mortgage | Traditional Mortgage |
|---|---|---|
| Income requirements | Often waived (collateral-based) | Required (W-2, tax returns) |
| Down payment | Bitcoin collateral may replace it | 3%–20% cash required |
| Tax event | No — you are not selling BTC | No |
| BTC appreciation upside | Yes — you keep it | N/A |
| Margin call risk | Yes — if BTC drops | No |
| Interest rates | Typically higher (5%–9%+ in 2026) | Lower (4%–7% range) |
| Loan limits | Based on BTC collateral value | Based on income/credit |
| Availability | Limited lenders, select states | Nationwide |
The Tax Advantage: Why Bitcoin Holders Care
This is the core reason Bitcoin-backed mortgages exist. Selling Bitcoin triggers capital gains tax. If you bought Bitcoin at $10,000 and it is now worth $90,000, selling $200,000 of BTC to fund a house purchase generates roughly $178,000 in capital gains. At a 20% long-term rate plus state taxes, that could be $40,000–$50,000 in taxes.
A Bitcoin-backed mortgage avoids the taxable event entirely. You borrow against your Bitcoin. No sale, no capital gains, no tax bill.
This makes Bitcoin mortgages especially valuable for long-term holders with large unrealized gains.
The Margin Call Risk: The Biggest Danger
Margin calls are the primary risk of Bitcoin-backed mortgages, and they can be brutal during bear markets.
Here is a concrete example:
- You pledge $500,000 in Bitcoin for a $350,000 mortgage (70% LTV)
- Bitcoin drops 60% over 12 months — your collateral is now worth $200,000
- Your LTV is now 175% — way above the threshold
- The lender issues a margin call: add $200,000 in Bitcoin or cash, or they liquidate
This scenario happened to some borrowers in the 2022 crypto bear market. If you cannot meet a margin call, the lender sells your Bitcoin at the worst possible time.
How to manage margin call risk:
- Keep your LTV well below the maximum (50% is safer than 70%)
- Maintain a cash reserve equal to 10%–20% of your Bitcoin collateral value
- Choose lenders with transparent margin call policies and grace periods
- Do not pledge your entire Bitcoin stack — keep some liquid
Who Should Get a Bitcoin-Backed Mortgage?
Good candidates
- Long-term Bitcoin holders with large unrealized gains who do not want to sell
- Self-employed borrowers or business owners who cannot qualify on income alone
- Foreign nationals who want US real estate exposure
- Investors purchasing non-primary-residence properties where income qualification is harder
- Borrowers who believe Bitcoin will continue appreciating and want to preserve exposure
Poor candidates
- Anyone who would struggle to meet margin calls during a 50%+ Bitcoin drawdown
- First-time buyers without a financial cushion beyond their Bitcoin stack
- Borrowers comparing rates purely on APR (traditional mortgages are cheaper)
- Anyone who needs their Bitcoin liquid for other purposes
Using Bitcoin as Down Payment Documentation (Alternative Approach)
If you want a conventional mortgage but need help with down payment documentation, some lenders will accept:
- 60-day average of Bitcoin account statements to prove reserves
- Bitcoin liquidation with paper trail — sell BTC, transfer USD to checking, wait 60 days, use as down payment. The lender documents the source of funds.
- Crypto-to-fiat bridge programs — some lenders have partnerships that handle the compliance paperwork for crypto down payments
This approach does trigger a capital gains tax event (you are selling the Bitcoin), but it may be the right call if you only need to sell a small amount.
Rates and Terms to Expect in 2026
Bitcoin-backed mortgage rates run 1–3 percentage points higher than conventional mortgage rates. In 2026, with conventional 30-year fixed rates in the 5%–7% range, expect Bitcoin mortgage rates of 7%–10%.
The premium reflects:
- Collateral volatility risk (Bitcoin can drop 50%+ quickly)
- Smaller lender market with less competitive pressure
- Regulatory uncertainty around crypto-collateralized lending
- Higher servicing complexity
For some borrowers, paying a higher rate is worth it to preserve Bitcoin exposure. For others, the math favors selling some BTC, paying the tax, and getting a conventional mortgage at a lower rate.
FAQ
Do I still own my Bitcoin during the loan?
Yes. You retain ownership of the Bitcoin, but it is pledged as collateral and held in custody. You cannot spend or move the pledged coins. You receive any appreciation when the loan is paid off and the collateral is released.
What happens to my Bitcoin if prices rise?
You keep the upside. The lender has no claim to appreciation above the loan balance. When you pay off the mortgage or refinance, your Bitcoin is returned — at its current value, not its value when pledged.
Can I get a Bitcoin mortgage for an investment property?
Yes. Bitcoin-backed mortgage lenders often have more flexible property type restrictions than conventional lenders. Investment properties, vacation homes, and short-term rentals may all qualify.
How is Bitcoin custody handled?
Varies by lender. Milo uses institutional custody partners. Unchained uses a multisig structure where you retain partial key control. Always ask the lender who holds the keys and what insurance covers the custodied Bitcoin.
Are Bitcoin mortgages available in all states?
No. Crypto mortgage products are available in select states only. Most major lenders cover California, Florida, New York, Texas, and other large states. Check with individual lenders for your state.
The Bottom Line
A Bitcoin-backed mortgage is a powerful tool for Bitcoin holders who want real estate without giving up their BTC exposure. The trade-off is a higher interest rate and the risk of margin calls in a downturn.
If you have strong Bitcoin conviction, substantial holdings, and the financial cushion to absorb a margin call scenario, a Bitcoin mortgage can make more sense than selling and paying capital gains. If you are stretched thin, stick with a conventional mortgage.
For lender comparisons and current rates, browse our full list of Bitcoin mortgage lenders and check our guide to Best Bitcoin Mortgage Lenders 2026.