Bitcoin Mortgage: No Margin Call Explained

In March 2026, Better and Coinbase announced the first Fannie Mae-eligible crypto-backed mortgage product. Headlines called it a milestone. And it was. But the detail that got the most attention was three words: "no margin call."

For a lot of Bitcoin holders, that phrase landed differently depending on what they already knew about crypto lending. If you have spent time with crypto loans, you know margin calls can be painful. If you are new to the idea of using Bitcoin to buy a home, you might not know what a margin call is at all.

This post explains what a margin call means in the context of a bitcoin mortgage, how the new Better and Coinbase product works, and how Milo has approached the same problem since 2022, including why Milo has never issued a margin call on a crypto loan.

What Is a Margin Call in a Crypto Mortgage?

A margin call is a lender's request for additional collateral when the value of the assets securing your loan drops below a certain threshold.

With traditional crypto loans, lenders set a loan-to-value (LTV) ratio. If Bitcoin drops sharply and your LTV ratio rises past a set limit, the lender can ask you to add more collateral or begin liquidating your position. This can happen even if you are making every payment on time.

That is what makes margin calls feel different from anything in traditional mortgage lending. A conventional home loan doesn't care if the housing market drops by 20 percent. As long as you keep making payments, the lender doesn't touch you. Crypto loans have historically worked differently.

For Bitcoin holders who want to use their BTC to buy a home, the possibility of a margin call in a volatile market is a real concern. It is also why the phrase "no margin call" became such a selling point when crypto mortgage products started gaining mainstream attention.

How the Better and Coinbase Product Works

The product Better and Coinbase launched in March 2026 uses a two-loan structure. You pledge Bitcoin or USDC as collateral to cover your down payment, then take out a standard Fannie Mae-eligible mortgage on the property. Both loans share the same rate and repayment term.

The no-margin-call promise is genuine. Under this structure, market movements in your crypto holdings do not trigger liquidation. The only event that puts your collateral at risk is a 60-day payment delinquency, which mirrors how a conventional mortgage works.

That is a meaningful protection for borrowers. It means you can hold your BTC through a market downturn without being forced to top up your collateral or watch your position get liquidated.

The trade-off is rate. Better and Coinbase loans carry interest rates 0.5 to 1.5 percentage points higher than standard 30-year mortgages, depending on borrower profile. The crypto collateral stays locked in custody for the life of the loan and is returned after payoff.

This product is also new. It launched in March 2026 and its track record is still forming.

How Milo Handles Market Drops

Milo has been offering crypto-backed mortgages since 2022. As of April 2026, Milo has closed more than $100 million in crypto-backed mortgages. That operating history matters because it means the product has been tested through real market conditions, including significant Bitcoin volatility.

Milo's structure is different from the Better and Coinbase two-loan product. Milo offers a direct mortgage where Bitcoin serves as collateral for the home loan itself, not just the down payment. There is no second loan to manage.

Milo does have a margin call mechanism. If the value of your Bitcoin collateral drops by 65 percent or more, Milo may request additional collateral or adjustment. That 65 percent threshold is the highest protection of any crypto mortgage currently on the market, meaning your position has to fall very far before any margin call scenario applies.

To put that in practical terms: if you pledged Bitcoin worth $500,000, Bitcoin would need to lose more than $325,000 in value, from that level, before a margin call threshold was reached.

And here is the fact that matters most: Milo has never issued a margin call on a crypto loan. Not once in four-plus years of operation and more than $100 million in originations.

Why That Track Record Matters

A policy and a practice are two different things. Any lender can set a margin call threshold on paper. The question that actually affects borrowers is: how has the lender behaved when markets moved against them?

Milo's answer is that despite operating through multiple cycles of Bitcoin volatility since 2022, including periods where BTC dropped significantly from its highs, no Milo borrower has ever received a margin call. The 65 percent threshold has simply never been triggered.

That does not mean it could never happen. Extreme, sustained drawdowns in Bitcoin value could theoretically reach that level. But the threshold is designed to protect borrowers from routine volatility, not just severe crashes. Other crypto loan products on the market carry thresholds that can trigger at much smaller price drops.

For buyers choosing between mortgage products, this history is worth factoring in alongside the terms. A no-margin-call structure removes that risk entirely. A high-threshold structure with a strong track record of not activating provides meaningful protection in a different way.

What to Consider When Comparing Products

Both approaches can serve Bitcoin holders well, depending on your situation. A few questions worth working through before you choose:

Structure: Do you want a single mortgage secured by your Bitcoin, or are you comfortable with a two-loan arrangement where the crypto covers the down payment separately?

Rate: The Better and Coinbase product runs 0.5 to 1.5 percentage points above standard mortgage rates. Milo rates vary by borrower profile and loan size. Get real quotes from both before comparing.

Loan size: Milo can accommodate larger loans, including jumbo amounts. Fannie Mae conforming limits apply to the Better and Coinbase product, which caps the base loan at $806,500 for most markets in 2026.

Track record: Milo has four years and more than $100 million in closed loans. The Better and Coinbase product launched in March 2026. Both have their own risk profiles.

Timeline: Milo has closed deals in as few as 27 days. The Better and Coinbase product timeline will vary as the program scales.

Ready to See What You Qualify For?

If you hold Bitcoin and are thinking about buying a home, you don't have to choose between your BTC and a new property. Milo was built to make that possible, and the team has helped borrowers close on more than $100 million in homes without selling a single coin.

Learn more about how the Milo crypto mortgage works at milo.io, or start an application to see your options.

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.