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 and surpassed $100 million in crypto mortgage originations.

In 2025, the FHFA directed Fannie Mae and Freddie Mac to begin recognizing cryptocurrency as mortgage reserves -- a development that signals growing mainstream acceptance of what Milo has been doing since 2022.

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 home or investment property.

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: The crypto mortgage is designed for investment properties and second homes. For primary home financing using crypto, Milo's crypto loan or investment mortgage programs may apply.
• Proof of funds: Borrowers must demonstrate sufficient reserves and closing costs. If opting for less than 100% financing, a down payment 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. Consult your tax advisor for your specific situation.

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. Milo has safely returned over $30 million to customers who paid off their loans and has helped them collectively build significant additional wealth.

4. Faster closing times A Milo crypto mortgage can close significantly faster than a traditional mortgage with many other lenders, enabling investors to act quickly in competitive real estate markets.

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 -- 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.

Frequently asked questions

What Bitcoin price drop triggers a margin call? For Milo's crypto mortgage, a margin call is initiated when the value of pledged BTC drops by approximately 35% from its value at origination. Borrowers are notified and given the opportunity to add collateral or reduce the loan balance before any liquidation occurs.

Can I use Ethereum instead of Bitcoin? Milo accepts both Bitcoin (BTC) and Ethereum (ETH) as collateral for the crypto mortgage program.

What happens after my loan is paid off? Once your loan is fully repaid, your crypto collateral is returned to you. Customers who have paid off their loans have benefited from the appreciation of their Bitcoin holdings during the mortgage term.

How long does the application process take? Milo's application is streamlined compared to traditional mortgages. Because eligibility is based on asset value rather than income documentation, the process moves significantly faster.

Is a crypto mortgage available in all states? Availability varies by state. Contact a Milo loan consultant to confirm availability in your area.

To learn more about how crypto mortgages work end to end, see our complete guide to Bitcoin mortgages.

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.