Securing a $2.6M property with a crypto mortgage

Our client, a savvy stock and crypto investor with millions in cryptocurrency holdings, wanted to transform part of his digital wealth into a tangible asset - a single-family residential investment property worth $2.575 million. Although his crypto assets were impressive, his traditionally filed income was relatively low.

The challenge: he lacked enough liquid non-crypto assets for a down payment, leading to a high Debt-to-Income (DTI) ratio. Conventional lenders were hesitant due to these factors. Further, the borrow was committed to avoiding selling his cryptocurrency holds to avoid incurring a significant capital gains tax.

Enter Milo's crypto mortgage solution.

After meeting with the client, Milo quickly determined that the client could qualify by leveraging his cryptocurrency as collateral, offering an innovative route to navigate the traditional mortgage landscape. The client was not required to iquidate any of his crypto assets. Instead, he pledged over $2.5 million in crypto with Milo as collateral for the loan us in November 2022; a move that proved incredibly acute.

At the time of his property purchase, one Bitcoin (BTC) was worth $15,000. Had he sold then, he would have paid capital gains tax and missed the subsequent value appreciation. Since he held onto his crypto, he benefited from a value appreciation of over 30% - that's over $750,000 in added value, on top of saving on capital gains tax.

With our client's crypto assets serving as collateral, we were able to secure a 100% Loan-to-Value (LTV) crypto mortgage. He acquired his desired property, maintained his crypto holdings, and even enjoyed substantial financial growth from his cryptocurrency's price appreciation.

This customer story underscores how innovative mortgage solutions like crypto mortgages can enable potential homeowners to leverage their digital assets effectively. Despite complexities like high DTI ratios and lack of traditional income, there are innovative ways to navigate the lending landscape.

Whether you're a crypto investor or have a unique income situation, we have the expertise to help. Want to learn more about the crypto mortgage? Click here!

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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.