Crypto loan vs crypto mortgage: which is right for you?

The rise of crypto-backed financing has opened new opportunities for investors looking to leverage their digital assets without selling them. Milo offers two distinct products: crypto loans and crypto mortgages. While both use crypto as collateral, they serve different financial needs.

The landscape has also shifted significantly. In 2025, the FHFA directed Fannie Mae and Freddie Mac to begin recognizing cryptocurrency as mortgage reserves -- a landmark development that signals how deeply crypto has entered mainstream real estate finance. For investors who have held Bitcoin or Ethereum for years, the tools available to put those assets to work have never been broader.

Understanding the differences between Milo's products can help you determine which best aligns with your investment strategy, whether you're looking for short-term liquidity or long-term asset growth through real estate.

What is a crypto loan?

A crypto loan allows borrowers to access liquidity while keeping their crypto holdings intact. Unlike traditional loans, no credit checks or income verification are needed -- loan eligibility is based on the value of your crypto collateral. This makes it a flexible solution for investors who want to tap into their assets without selling them.

Crypto loans are commonly used in real estate to make competitive cash offers, fund home renovations, or finance fix-and-flip projects that may not qualify for traditional financing. Outside of real estate, they can also be used for business expenses, investment opportunities, or large purchases. The key benefit is that borrowers retain exposure to potential future crypto gains while securing the cash they need.

Loan requirements

• Loan amount range: $5,000 to $5,000,000
• Collateral ratio: 2:1 crypto collateral to desired loan amount
• Loan term: 12 months (rollover available)
• Loan variants: Two options available -- (1) with monthly interest payments, or (2) without monthly payments (interest accrues to loan balance)

Example A borrower looking for a $100,000 loan would need to pledge $200,000 worth of crypto as collateral. The loan can be repaid over 12 months, with the option to roll it over if needed.

What is a crypto mortgage?

A crypto mortgage enables borrowers to purchase U.S. real estate by pledging crypto as collateral instead of making a traditional down payment. This allows crypto investors to enter the real estate market without liquidating their holdings, avoiding capital gains taxes and preserving their ability to benefit from future appreciation.

Crypto mortgages help address liquidity and affordability challenges in the U.S. housing market. While crypto assets have experienced substantial growth, real estate offers a tangible investment that can provide long-term stability.

Loan requirements

• Loan amount range: Up to $5 million
• Collateral ratio: 1:1 crypto collateral to purchase price (requirement varies based on cash contribution)
• Loan term: 30-year fixed term

Example A borrower purchasing a $500,000 property could pledge $500,000 worth of crypto as collateral, or a combination of crypto and cash, depending on their preference. The mortgage would be structured as a 30-year fixed loan with predictable monthly payments.

Key differences: crypto loan vs. crypto mortgage

Which one is right for you?

Choosing between a crypto loan and a crypto mortgage depends on your financial goals, investment strategy, and liquidity needs.

A crypto loan is ideal for those who need short-term liquidity for real estate purchases, renovations, or investment opportunities. It provides quick access to funds without selling crypto and offers flexible repayment options. It is particularly well suited for primary home purchases where you need cash for a down payment or closing costs.

A crypto mortgage is a better fit for those looking to purchase an investment property or second home while preserving their crypto holdings. It provides long-term financing, helps avoid capital gains taxes, and allows investors to diversify between digital and tangible assets.

Frequently asked questions

Can I use a crypto loan for a primary residence? Yes. Milo's crypto loan can be used to fund a down payment or cover liquidity needs for a primary home purchase. The crypto mortgage, however, is designed for investment properties and second homes.

What crypto can I use as collateral? Milo accepts Bitcoin (BTC) and Ethereum (ETH) as collateral for both products.

Is my crypto at risk during the loan? Your crypto is held in secure custody with Coinbase and BitGo and is never rehypothecated. In the event of a significant drop in collateral value, Milo will notify you and provide an opportunity to add collateral before any liquidation occurs.

How do I get started? Speak with a Milo specialist to determine the best solution for your situation.

Compare the top U.S. crypto loan lenders, or see what Bitcoin mortgage options are available today.

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.