Selling crypto for a down payment triggers capital gains taxes and forfeits future upside. We tested three lenders that let you use your Bitcoin and Ethereum as collateral or qualifying assets instead — Milo, LendFriend, and Rocket Mortgage — to find *the things actually worth buying* when you're ready to buy a home without cashing out.
If you've been stacking Bitcoin or Ethereum for years, congratulations — you're sitting on a life-changing asset. But when it comes time to buy a home, that asset becomes a trap. Sell it for a down payment and you trigger capital gains taxes, lose your upside, and watch the tax man take a cut of your future gains.
A smarter path exists. A handful of lenders now treat crypto as collateral or as qualifying assets, letting you finance a home without liquidating your stack. We evaluated the three most promising options — Milo, LendFriend, and Rocket Mortgage — on flexibility, asset treatment, and real-world feasibility. Here's who wins.
Before we get to the picks, you need to understand the two models at play:
Crypto-Backed (collateralized): You pledge your crypto as collateral for the loan. The lender holds it, you keep ownership, and you avoid any taxable event. The loan is secured against both the property and your digital assets.1
Crypto-Friendly (asset verification): The lender counts your crypto holdings as qualifying assets on your application. You may still need to convert some crypto for the down payment, but the bulk of your portfolio stays untouched.2
Both models beat the old approach of selling everything and hoping for the best.
Milo is the clear leader in crypto-backed lending, and for good reason. They let you finance up to 100% of your home purchase using your crypto as collateral — no sale required.1
You keep your Bitcoin or Ethereum. Milo holds it as collateral, you get the cash to buy the home, and there's no taxable event. The loan structure is straightforward: the effective combined loan-to-value (LTV) ratio against both the property and your crypto is kept conservative to provide a buffer.3
Who it's for: Buyers with significant crypto holdings who want to avoid any tax event and keep their full position in the market.
The trade-off: You're taking on leverage against a volatile asset. If crypto prices drop sharply, you may need to post additional collateral.
LendFriend takes a slightly different approach. Their asset-backed model counts your crypto as qualifying assets on your mortgage application. You only convert what's strictly needed for the down payment — typically a small fraction of your holdings.2
This means the majority of your crypto stays in your wallet, continuing to appreciate (or, yes, depreciate) without triggering a tax event. For investors who are sitting on large unrealized gains, this is a massive advantage over conventional lenders who would require you to liquidate and show two years of seasoning on the funds.
Who it's for: Crypto investors with strong holdings who want a traditional mortgage structure but need a lender that understands digital assets.
The trade-off: You still need to convert some crypto for the down payment, creating a (smaller) taxable event.
Rocket Mortgage is the 800-pound gorilla of the mortgage world, and they've published educational resources on crypto-backed mortgages.3 While they're not as specialized as Milo or LendFriend, their scale and reputation make them a viable option for borrowers who want a household name.
Rocket's approach keeps the combined LTV ratio lower to provide a buffer against crypto volatility.3 This means you'll likely need more equity in either the property or your crypto to qualify, but you get the stability and process of America's largest mortgage lender.
Who it's for: Borrowers who prioritize lender reputation and process over maximum crypto flexibility.
The trade-off: Less flexibility on crypto terms compared to specialized lenders; higher equity requirements.
Let's say you bought $50,000 of Bitcoin in 2020, and it's now worth $200,000. If you sell it all for a down payment, you owe long-term capital gains tax on the $150,000 profit — roughly $22,500 at the 15% rate, depending on your bracket.
With a crypto-backed or crypto-friendly mortgage, that $150,000 stays invested. If Bitcoin doubles again over the next four years, you've preserved $300,000 in future value. The math is compelling.
We evaluated each lender on three criteria: (1) whether they require a sale of crypto or allow collateralization, (2) the maximum LTV and financing terms available, and (3) the tax implications of their model. All information comes from the lenders' official documentation and published guides.1
Recomate is an affiliate — we may earn a commission when you apply through our links. Our picks are independent and based on our research.
If you're a crypto investor looking to buy a home, Milo is the strongest option for avoiding taxes and keeping your full position. LendFriend is a close second if you prefer a more traditional mortgage structure. Rocket Mortgage is the safe pick for borrowers who want a major institution.
The era of being forced to sell your crypto for a down payment is ending. These three lenders are the things actually worth buying — or rather, borrowing from — when you're ready to turn your digital wealth into a physical home.
| Pick | Price | Model | Max Financing | Tax Event | |
|---|---|---|---|---|---|
Pick 1 ▶ Pick | — | Crypto-backed collateral | Up to 100% | None | Check price ↗ |
Pick 2 best for minimizing tax events. asset-backed model counts crypto as qualifying assets; only convert what's needed for down payment. | — | Asset-backed verification | Standard LTV | Minimal | Check price ↗ |
Pick 3 best for borrowers who want a major lender. conservative ltv buffers against crypto volatility, backed by america's largest mortgage lender. | — | Crypto-friendly LTV | Conservative LTV | Depends on structure | Check price ↗ |
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