Lenders that accept cryptocurrency as collateral for residential mortgages are moving from pilot to product. Milo is one of the firms now underwriting home loans where borrowers post Bitcoin or Ethereum rather than liquidating holdings — a shift that lets long-term crypto holders access home equity without triggering capital gains events.

How it works: Milo offers loans that can cover 100% of a home purchase, secured by BTC or ETH held with approved custodians such as BitGo or Coinbase. The company describes its structure as dual-collateral: the property and the crypto stake together underpin the loan, with custody controls and automated mechanisms designed to manage counterparty and custody risk.

Volatility management is built into the product. Because collateral values can swing widely, the mortgage allows borrowers to add more crypto or to pay down principal to restore loan-to-value buffers. Milo also retains the right to liquidate small portions of collateral if markets move sharply and a borrower does not remediate, a mechanism intended to avoid full foreclosure while preserving the loan’s economics. The core user benefit is clear: access to liquidity for a real-world purchase without selling taxable crypto positions.

This addresses a longstanding friction in mortgage underwriting. Traditional lenders typically don’t treat crypto holdings as qualifying assets or income, forcing many holders to convert crypto into fiat prior to applying. Milo’s model and similar offerings are gaining attention as federal agencies and market participants start to consider crypto assets in mortgage evaluations. Milo currently operates in 10 states while these regulatory and industry conversations evolve.

Practical risks remain material. Borrowers should expect margin-like dynamics: rapid price declines can require immediate remediation, and any forced liquidation may itself create taxable events depending on jurisdiction and timing. Custodial counterparty risk, state-by-state availability, and evolving supervisory guidance all add uncertainty that can affect loan terms and borrower exposure.

For prospective borrowers, key due diligence items are loan-to-value thresholds, trigger and cure processes for collateral shortfalls, custodian selection, and the tax treatment of any forced sales. Industry reporting on the product and rollout can be found here: https://candysdirt.com/2025/12/12/have-bitcoin-now-you-can-finance-a-home-with-cryptocurrency-mortgage-lender-milo/