How to qualify for a crypto mortgage without selling your bitcoin

The rise of crypto mortgages has reshaped the way digital asset holders can leverage their portfolios for real estate investments. Instead of liquidating their Bitcoin holdings and incurring capital gains taxes, investors can now secure a mortgage while retaining their exposure to Bitcoin’s potential upside. Milo, a leader in crypto mortgage solutions, has pioneered this approach, surpassing $65 million in crypto mortgage originations.

Understanding Milo’s crypto mortgage program

Milo’s crypto mortgage is designed for investors who want to purchase U.S. real estate without selling their Bitcoin. Unlike traditional mortgages that require income verification and credit scores, Milo’s program is asset-based. Borrowers pledge their Bitcoin as collateral, and in return, they receive a mortgage to buy their second or investment home.

Qualification requirements To qualify for a Milo crypto mortgage, applicants need:

• 1:1 BTC-to-home value: The amount of Bitcoin pledged must match the home’s purchase price. For example, purchasing a $500,000 home requires $500,000 worth of BTC held as collateral.
• Investment or second homes only: Due to capital market restrictions, primary residences are not eligible. Borrowers must provide proof of ownership of their primary home at closing.
• Proof of funds: Borrowers must demonstrate sufficient reserves and closing costs. If opting for less than 100% financing, a downpayment will also be required.

Key benefits of a crypto mortgage

1. Preserve Bitcoin’s upside potential Selling Bitcoin to buy property can mean missing out on potential future gains. A crypto mortgage allows investors to retain their holdings while securing real estate.

2. Avoid capital gains taxes Selling Bitcoin triggers taxable events, potentially reducing the amount available for investment. A crypto mortgage bypasses this issue, keeping tax liabilities in check.

3. Asset appreciation and wealth building Many Milo customers have not only retained their Bitcoin but also grown their wealth by keeping their assets intact. To date, Milo has safely returned over $30 million to customers who paid off their loans and has helped them collectively build an additional $50 million in wealth.

Security and custody: addressing key concerns

Security remains a top priority for crypto mortgage borrowers. Milo is a heavily regulated entity, ensuring institutional-level protection for customers' assets. Unlike some platforms, Milo does not rehypothecate Bitcoin collateral, meaning that customer assets are never loaned out or used for other purposes.

Milo partners with BitGo and Coinbase, two of the most trusted third-party custodians in the industry, to safeguard assets. This ensures that Bitcoin pledged as collateral remains secure throughout the life of the loan and that customers' assets remain their own, not at risk should anything happen to the company

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.