Bitcoin entrepreneur buys $2.95M California home with crypto

As a loan consultant at Milo, I’ve helped countless clients navigate complex financing scenarios, but one recent experience stood out for its innovative approach. A repeat customer, an entrepreneur who successfully built substantial wealth through Bitcoin (BTC), approached us to finance a $2,950,000 single-family home in California. Despite his significant crypto holdings exceeding $5 million, his unique situation posed hurdles traditional lenders wouldn't tackle.

Being self-employed often complicates income verification, typically required in traditional Debt-to-Income (DTI) loan processes. Moreover, with nearly all his assets held in Bitcoin, most traditional banks hesitated, unable or unwilling to recognize crypto assets as reliable financial reserves or collateral. Our client needed a lender who understood crypto assets and had the flexibility to incorporate these assets creatively into the mortgage qualification process.

At Milo, we understand that crypto assets hold substantial value and can significantly enhance a borrower's qualification profile. Rather than relying solely on traditional income verification, we leveraged his BTC holdings directly, qualifying him without requiring income documentation. Specifically, we structured a crypto mortgage at a 50% Loan-to-Value (LTV) ratio, meaning Milo financed half of the home's purchase price while our client comfortably covered the rest with a BTC-backed down payment.

A key differentiator at Milo is our flexibility in how clients utilize their crypto assets. While some prefer using their crypto as collateral, securing the loan without selling their assets, our client chose a hybrid approach. He sold a portion of his BTC to fund the down payment, eliminating the need for additional collateral. At the same time, the remainder of his holdings served as reserves to satisfy underwriting guidelines. Traditional lenders typically require borrowers to maintain several months' worth of mortgage payments in cash as reserves; we uniquely allowed his BTC holdings to fulfill this requirement.

This scenario underscores Milo's fluid approach to crypto-backed mortgages. We tailor each financial solution to fit our client's specific needs, whether they prefer collateralizing their crypto assets directly, liquidating a portion for a down payment, or simply using their digital wealth to meet reserve qualifications.

Our entrepreneurial client's seamless process aligned perfectly with his financial strategy, preserving his crypto wealth while confidently investing in a premier California property. At Milo, our priority is offering clarity, flexibility, and tailored solutions, ensuring our clients’ financial assets, crypto included, work effectively to fulfill their real estate aspirations.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.