Buying a home with cryptocurrency is no longer just a concept—it’s becoming a viable reality.
On June 25, the Federal Housing Finance Agency (FHFA) issued guidance instructing government-backed mortgage giants Fannie Mae and Freddie Mac to consider cryptocurrency as part of asset evaluations when assessing single-family mortgage risk. The move has drawn new attention to crypto-backed mortgage options, especially those using Bitcoin.
One of the leading players is Milo, a Miami-based company specializing in crypto mortgages. CEO Josip Rupena explained, “We approve mortgages using Bitcoin as collateral. Borrowers can fund home purchases without selling their crypto holdings.”
Milo offers up to 100% financing if the borrower provides the equivalent value of the home in Bitcoin or Ethereum as collateral. For instance, to buy a $500,000 home, a borrower could pledge $500,000 worth of Bitcoin or Ethereum, skipping the traditional down payment altogether.
One of the biggest advantages is that credit scores and income verification are not required. This makes crypto-backed loans an attractive option for buyers who might otherwise struggle to qualify for conventional financing. Borrowers also retain potential gains from any increase in the value of their collateralized crypto assets, which are returned once the loan is repaid.
Milo reported that within its first quarter of operation, it gathered over 1,000 applicants and has since issued more than $65 million in crypto-based home loans. The company says its process is faster and simpler than traditional financing. “We don’t rely on credit scores or tax documents. We evaluate the client’s assets directly,” Milo noted.
However, the process still requires Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, as is standard in crypto transactions.
Other fintech firms offering similar services include Ledn, Nexo, and Salt, which accept various cryptocurrencies such as Bitcoin, Ethereum, and Tether as collateral.
There are caveats. Interest rates for crypto-backed mortgages are relatively high, typically ranging from 9% to 10%, and the minimum loan amount is $275,000. Some lenders also require borrowers to pledge crypto worth at least 150% of the loan value to offset volatility.
Because of crypto’s price fluctuations, borrowers may face margin calls if the value of their collateral drops below a set threshold. In such cases, they must either deposit more collateral or risk automatic liquidation of their assets.
In addition to loans, some real estate transactions now accept direct crypto payments. In these cases, sellers may receive Bitcoin directly or use a crypto payment processor to convert the funds into U.S. dollars for escrow. However, these transactions may trigger capital gains tax and are subject to varying regulatory treatment, making them more complex and less common for now.
BY HOONSIK WOO [woo.hoonsik@koreadaily.com]
