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.

Understanding the differences between them 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: $75,000 to $500,000
• Collateral ratio: 2:1 crypto collateral to desired loan amount
• Loan term: 12 months (rollover available)

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. Owning a home also offers intangible benefits—whether it’s a property to build a future in or a diversified addition to an investment portfolio.

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.

A crypto mortgage is a better fit for those looking to purchase real estate 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.

Final thoughts Both crypto loans and crypto mortgages offer innovative ways to leverage digital assets without selling them. If you need immediate liquidity for real estate investments or other financial needs, a crypto loan could be the right fit. If you’re looking to buy property while keeping your crypto portfolio intact, a crypto mortgage may be the better option.

Explore your options with Milo, speak with a specialist today to determine the best solution for you.

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.