Can You Buy a House Using a Bitcoin Loan?
Yes, it is possible to buy a house using a Bitcoin-backed loan, although it requires careful planning and choosing the right lender. Instead of selling your BTC and triggering capital gains tax, you can borrow cash using your Bitcoin as collateral and use that money to purchase real estate.
How a Bitcoin-Backed Loan Works
When you take a Bitcoin-backed loan, your BTC is locked up as collateral with the lender. You receive a cash loan that is typically up to 30–50% of your Bitcoin’s value, known as the loan-to-value ratio (LTV).
BTC Loan Example:
- You deposit $200,000 in BTC.
- The lender gives you a $100,000 loan (50% LTV).
- You use that money for a down payment or to purchase a property outright.
You repay the loan in USD, including interest. Once it is paid off, your BTC is released back to you. If Bitcoin’s price drops significantly, you could face a margin call that requires you to add more BTC or repay part of the loan.
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Top Bitcoin Mortgage and Crypto Loan Providers
| Lender | Product Type | LTV Ratio | Interest Rate | Notes |
|---|---|---|---|---|
| Milo.io | Bitcoin Mortgage | Up to 40% | 8–10% | Use BTC or ETH to buy property in the United States |
| Ledn.io | BTC-Backed Loan | 50% | 9% | Offers Bitcoin plus real estate collateral loans |
| Figure.com | Blockchain Home Equity Line | Varies | Competitive | Uses Provenance blockchain |
| Nexo | Crypto Credit Line | 30–50% | 10–12% | Global lender, quick funding |
Always confirm licensing and terms before committing, as not all lenders operate in every U.S. state.
Pros of Buying a House with Bitcoin
- Avoid capital gains taxes by not selling your crypto.
- Retain Bitcoin exposure if its value rises.
- Fast approval from crypto-native lenders.
- Flexible loan use for down payments or full purchases.
Cons and Risks
- Liquidation risk if BTC price drops sharply.
- Higher interest rates between 8% and 12%.
- Limited lender
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