Bitcoin Mortgages

Bitcoin Mortgage Guide 2026: Buy a House Without Selling Your BTC

You own Bitcoin. You want to buy a house. Your instinct says sell some Bitcoin for the down payment — but that means a massive capital gains tax bill and losing your position at what could be the worst moment.

There's a better way. Bitcoin-backed mortgages let you borrow against your Bitcoin, buy property, and keep your full BTC position intact. This guide explains exactly how they work, who offers them, and when they make sense.

The Core Problem: Selling Bitcoin Costs More Than You Think

Before exploring Bitcoin mortgages, understand why avoiding a Bitcoin sale matters so much.

Suppose you need $150,000 for a down payment and you've held 2 BTC since 2020 when Bitcoin was $10,000. Each BTC cost you $10,000 ($20,000 total cost basis). Today's price: $100,000 per BTC.

If you sell 1.5 BTC for the down payment:

  • Sale proceeds: $150,000
  • Cost basis: $15,000 (1.5 BTC × $10,000)
  • Capital gain: $135,000
  • Federal long-term tax (20%): $27,000
  • State tax (California at 13.3%): $17,955
  • Total tax bill: $44,955

You lose $44,955 to taxes — nearly 30% of your down payment. And you've sold Bitcoin you've held for years.

If you borrow $150,000 against your Bitcoin instead:

  • Tax: $0 (borrowing is not a taxable event)
  • You keep all 2 BTC
  • You pay interest on the loan
  • Net cost: interest payments over time (potentially $15,000-20,000/year at current rates)

For most long-term Bitcoin holders, the loan pays for itself within 2-3 years compared to the tax hit from selling — especially if Bitcoin continues appreciating.

Two Approaches to Bitcoin Mortgages

Approach 1: Bitcoin as Collateral (True Bitcoin Mortgage)

You pledge Bitcoin as collateral to receive a loan. The loan funds your down payment or the entire property purchase. Your Bitcoin is held by the lender (or in multisig) until the loan is repaid.

Best for: Large Bitcoin holders who want to keep their position and don't mind paying higher interest for the non-custodial or collateral-backed structure.

Key lenders:

  • Milo — 30-year crypto mortgage, US properties
  • Ledn — Bitcoin-backed international mortgage
  • Unchained — 2-of-3 multisig collateral, US-focused
  • Figure — Crypto-backed loans and HELOCs
  • Debifi — Non-custodial, multisig structure

Approach 2: Bitcoin as a Qualifying Asset (Conventional Mortgage)

You don't use Bitcoin as collateral. Instead, lenders accept Bitcoin holdings as proof of assets for mortgage qualification — counting Bitcoin toward your net worth, reserves, and sometimes income.

Best for: Bitcoin holders who want conventional mortgage rates and don't want to pledge their Bitcoin at all.

Key lenders:

The Major Bitcoin Mortgage Lenders

Milo — The 30-Year Crypto Mortgage

Milo pioneered the "crypto mortgage" category. Their product is unique: a genuine 30-year amortizing mortgage where crypto serves as both collateral and down payment. You can buy a property with 0% down — Milo holds your crypto, you take the property.

Product specifics:

  • Term: 30 years (the only lender offering this term length)
  • LTV: Up to 100% (no cash down payment required)
  • Rate: ~7-10% (higher than conventional but fixed term)
  • Property: US residential and investment properties
  • Collateral: Bitcoin and other major cryptos
  • Margin call: If crypto value drops significantly, you must add collateral or repay

The risk: At 100% LTV, if Bitcoin crashes 30-40%, you may face margin calls on both your mortgage collateral AND your property value may decline in a downturn — a double squeeze. Milo is most appropriate when you have Bitcoin above the mortgage value and can add collateral if needed.

Best for: US buyers who want 30-year financing and don't mind Milo holding their Bitcoin.

Unchained — Multisig Non-Custodial

Unchained's mortgage product uses their signature 2-of-3 multisig structure. Your Bitcoin goes into a multisig vault: you hold one key, Unchained holds one key, a third-party key agent holds the third. Unchained cannot access your Bitcoin without your key.

Product specifics:

  • Term: 1-3 years (bridge loan, not 30-year)
  • LTV: Up to 50%
  • Rate: ~8-12%
  • Custody: 2-of-3 multisig (you retain meaningful control)
  • Minimum: $50,000+ loan
  • Best use: Down payment for a conventional mortgage

The Unchained bridge strategy: Many buyers use Unchained as a bridge loan to fund their down payment, then close on a conventional 30-year mortgage at normal rates for the property itself. After getting the conventional mortgage, they repay Unchained's loan from income over 1-3 years. Result: conventional mortgage rates on the property, non-custodial Bitcoin collateral, no capital gains event.

Best for: Security-conscious Bitcoin holders with $100,000+ in BTC who want to keep meaningful custody control.

Ledn — International Access

Ledn offers Bitcoin-backed mortgages with a focus on international clients — Canadians, Europeans, Latin Americans buying US property, or anyone who needs cross-border flexibility.

Product specifics:

  • Term: 1-3 years bridge
  • LTV: Up to 50%
  • Rate: ~12-14% APR
  • Geographic reach: International (US, Canada, Latin America, Europe)
  • Collateral: Ledn custodial (they hold your Bitcoin)

Proof of Reserves: Ledn publishes quarterly Proof of Reserves attestations, providing more transparency than most lenders.

Best for: Non-US buyers, or US buyers needing a short-term bridge who want Ledn's international flexibility.

Figure — HELOC and Refinancing

Figure uses blockchain technology for loan origination (faster closing) and accepts crypto as collateral for HELOCs and refinances. The Figure Bitcoin HELOC is particularly useful for homeowners who already have equity and want to borrow against Bitcoin without selling.

Product specifics:

  • Products: HELOC, home equity loans, refinances
  • Rate: Competitive (varies)
  • Closing: 5 days typical (faster than traditional lenders)
  • Technology: Blockchain-based origination

Best for: Existing homeowners wanting a HELOC funded by Bitcoin collateral.

Quontic Bank — Asset-Qualified Lending

Quontic is a federally chartered bank that offers Non-QM (non-qualified mortgage) products where Bitcoin holdings count as qualifying assets. You don't pledge Bitcoin as collateral — you use it to demonstrate financial strength for loan qualification.

Product specifics:

  • Type: Non-QM mortgage (asset depletion method)
  • Conventional 30-year rates (much lower than collateral-backed lenders)
  • Bitcoin counted as assets, not pledged as collateral
  • Standard appraisal, title, and closing process

Asset depletion method: Quontic divides your liquid assets (including Bitcoin) by the loan term to calculate a "monthly income" for qualification. 1 BTC at $100,000 over a 360-month mortgage = $277/month in qualifying income. Multiple BTC can significantly boost qualification.

Best for: Bitcoin holders who want conventional mortgage rates without pledging their Bitcoin.

The Step-by-Step Process

For Collateral-Backed Bitcoin Mortgages (Milo, Unchained, Ledn)

Step 1: Determine your LTV Calculate how much you can borrow: (Bitcoin value × max LTV). At 50% LTV and 2 BTC ($200,000): maximum loan = $100,000.

Step 2: Choose your lender

  • Want 30-year term? → Milo
  • Want to keep your keys? → Unchained
  • International property? → Ledn

Step 3: Apply and verify identity All lenders require KYC (Know Your Customer) verification. Have ID and proof of Bitcoin ownership ready.

Step 4: Transfer Bitcoin to collateral

  • Milo: transfer to Milo custody wallet
  • Unchained: move to 2-of-3 multisig vault
  • Ledn: transfer to Ledn custody wallet

Step 5: Receive funds Funds are typically disbursed in 1-5 business days. Unchained takes longer due to multisig setup.

Step 6: Complete property purchase Use loan funds as down payment or entire purchase price depending on the product.

Step 7: Repay over time Make monthly interest payments. Repay principal when the loan term ends (or over 30 years with Milo).

For Asset-Qualified Mortgages (Quontic, Guaranteed Rate)

Step 1: Document Bitcoin holdings Provide 3-6 months of exchange statements or on-chain proof of holdings. Cold storage holders may need to provide transaction history.

Step 2: Work with a crypto-savvy loan officer Not all loan officers understand Bitcoin qualification. Ask specifically for an officer experienced with digital asset mortgages.

Step 3: Standard mortgage process Appraisal, title search, underwriting, and closing proceed like a conventional mortgage.

Step 4: Close with conventional rate No Bitcoin moves — you keep full control of your holdings throughout.

Bitcoin Mortgage Math: Is It Worth It?

Scenario: $300,000 home, $60,000 down payment needed, 4 BTC at $100,000/BTC ($400,000)

Option A: Sell 0.6 BTC

  • Capital gains (bought at $5,000 each): $57,000 gain
  • Federal tax (20%): $11,400
  • State tax (California): $7,581
  • After-tax proceeds: $60,000 after paying $18,981 in taxes
  • Bitcoin left: 3.4 BTC

Option B: Unchained Loan (50% LTV)

  • Deposit 1.2 BTC as collateral → borrow $60,000
  • Annual interest (~10%): $6,000/year
  • Tax: $0
  • After 3 years: paid ~$18,000 in interest, repaid principal, got 1.2 BTC back
  • Bitcoin kept throughout: 4 BTC

Break-even: ~3 years of interest payments equals the tax savings. After year 3, the loan savings compound in your favor because you've kept 0.6 more BTC appreciating throughout.

If Bitcoin doubles in those 3 years: that 0.6 BTC you didn't sell is now worth $120,000. The $18,000 interest was extraordinarily cheap leverage.

Risks to Understand

Margin Call Risk

If Bitcoin falls sharply, lenders may require you to:

  1. Add more collateral (more BTC)
  2. Repay part of the loan
  3. Allow liquidation of collateral

At 50% LTV, Bitcoin must fall approximately 50% before you hit liquidation territory (depending on lender margin call levels). This provides cushion, but Bitcoin has historically seen 70-80% drawdowns from all-time highs.

Mitigation: Don't borrow at maximum LTV. Stay at 30-40% LTV for significant drawdown protection.

Custody Risk

For custodial lenders (Milo, Ledn), you're trusting the company with your Bitcoin. This exposes you to:

  • Exchange/lender insolvency (BlockFi, Celsius collapsed this way)
  • Regulatory action affecting the lender
  • Hacks

Mitigation: Use Unchained's multisig structure, or choose lenders with Proof of Reserves and regulatory standing. Milo and Ledn are more regulated than the defunct lenders were.

Interest Rate Risk

Bitcoin mortgage rates (8-14%) are 2-7 percentage points above conventional mortgage rates (6-7% in 2026). Over 30 years on a large loan, this is significant.

Mitigation: Use as a bridge loan, not 30-year financing where possible. Refinance to conventional once Bitcoin has appreciated enough.

Counterparty Risk

All lending involves trusting the counterparty. Bitcoin-specific lenders are newer, smaller, and less regulated than traditional banks.

Mitigation: Use the Unchained multisig structure for custody security, or use conventional lenders with Bitcoin asset qualification.

Frequently Asked Questions

Can I get a Bitcoin mortgage in any US state? Availability varies by lender and state licensing. Milo and Unchained operate in most US states; check each lender's state availability page. International lenders like Ledn have different geographic coverage.

Do I need to sell Bitcoin for closing costs? Closing costs (typically 2-5% of purchase price) often need to be paid in cash. You may need to sell a small amount of Bitcoin for this unless you have cash reserves. Alternative: negotiate seller concessions to reduce closing costs.

Will my Bitcoin mortgage appear on my credit report? Depends on the lender. Milo and conventional lenders report to credit bureaus. Some Bitcoin-specific bridge lenders don't, which is both an advantage (no credit impact) and disadvantage (doesn't build credit history).

What happens to my Bitcoin if I miss a payment? Missed payments trigger cure periods (typically 30 days) before any enforcement action. For collateral-backed loans, the lender may sell your Bitcoin collateral. For conventional asset-qualified mortgages, standard foreclosure law applies.

Can I use Bitcoin from a cold wallet as collateral? Yes, but you'll need to transfer it to a wallet the lender can verify or hold. For Unchained's multisig structure, your cold wallet keys are part of the multisig setup. For custodial lenders, you'll move Bitcoin to their custodial wallet.

Is the interest on a Bitcoin mortgage tax-deductible? For a primary residence with Milo's 30-year mortgage: potentially yes, if structured as a qualified home mortgage. For collateral-backed bridge loans not securing the property directly: typically no. Consult a CPA — this depends on loan structure and how the IRS classifies the debt.

When NOT to Use a Bitcoin Mortgage

Bitcoin mortgages aren't always the right answer:

  • Low-basis Bitcoin in no-income-tax state: If you live in Wyoming, Texas, or Florida, your capital gains are only federally taxed (0-20%). A small Bitcoin position with a large gain may be worth selling cleanly.

  • Bitcoin near bear market lows: If you believe Bitcoin is at a cycle low and could fall further, taking a collateral-backed loan at 50% LTV risks margin calls during recovery. Wait for price stability.

  • Small Bitcoin position: For $10,000-$30,000 in Bitcoin, the complexity and higher rates of Bitcoin mortgages may not be worth it versus simply using the Bitcoin for a down payment.

  • Need long-term conventional rates: If you want 30-year conventional rates and can use Bitcoin asset qualification (Quontic, Griffin Funding), that's often more cost-effective than collateral-backed products.

Browse the full Bitcoin mortgage directory to compare all Bitcoin mortgage lenders, rates, and terms.

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