Mortgage professionals divided on whether cryptocurrency will take the industry by storm
A growing number of Americans are holding cryptocurrency, and uptake is only expected to increase in the years ahead. Some are even using it to fund full mortgages and downpayments – and it’s no surprise that many brokers are seeing increased discussion from clients exploring using their digital currency to help purchase a home.
Still, it remains unclear how much of a splash cryptocurrencies will make in the mortgage market in the years ahead.
With home affordability challenges unlikely to go away anytime soon and concerns about downpayment assistance programs being cut, people with crypto can tap into their equity to help secure downpayments without selling it.
Some brokers told Mortgage Professional America they are seeing increased client discussion of digital assets, while others have had little interest from homebuyers.
Josip Rupena (pictured top), CEO of the crypto mortgage company Milo, said homebuyers are looking for ways to leverage their cryptocurrency without selling it, which can result in large capital gains taxes.
“There's a lot of clients that have amassed Bitcoin wealth from over 10 years ago, when Bitcoin was trading at $100,” Rupena told MPA. “Now, Bitcoin trading is at $85,000. It's become a significant portion of their net worth, and they don't want to sell it. As they have moved on to a different stage of life and are looking to buy homes and diversify their wealth, they're looking at the ability to get a home.”
Bitcoin’s value went above $88,000 on Monday, and some experts believe it may surge above $100,000. Those experts believe that the US buying its own debt and a weakening US dollar may lead to a jump in cryptocurrency usage.
Two years ago, Redfin said 12% of first-time home buyers sold crypto to help finance a down payment. Rupena believes that number increased to 14% last year.
“That number is probably only going to continue to grow as the US now has taken a positive stance towards Bitcoin and other digital assets,” Rupena said. “We expect that to become a much more common part of people's portfolios.”
Brokers have different experiences with crypto and mortgages
Brokers reported varying levels of interest from clients in using cryptocurrency to fund their mortgage.
Michael Merritt, senior vice president, customer care and default mortgage specialist with BOK Financial, hasn’t had a lot of customers discussing it, but believes that will increase as homebuyers get younger.
“I think as the average age of customers starts going down, I do think that that will be something that becomes more common,” Merritt told Mortgage Professional America. “I think it's pretty dependent on who your customer base is. I think in 18 months, crypto is something that's becoming more mainstream.”
Carlos Scarpero, mortgage broker at Edge Home Finance, said he hasn’t seen much lending via crypto and has only had one transaction involving it in the last seven years.
“I think I’ve only closed one deal in the past seven years where they sold crypto holdings for closing funds,” Scarpero told Mortgage Professional America. “It rarely comes up in conversation.”
Scarpero notes that those types of transactions are challenging because profits are harder to document with accurate statements.
As with any other market-based collateral, there are risks to crypto mortgages. Crypto markets have been highly volatile. While the value of the crypto can go up while it’s held as collateral, it can also drop, which may require you to add additional digital currency to cover the collateral. Worst-case scenario: If the market bottoms out, the collateral could be liquidated.
Another source for down payment assistance
Milo recently surpassed $65 million in crypto mortgage volume. And while some brokers and customers may not be ready to go all-in on a full crypto mortgage, another product that may be appealing is a downpayment loan.
At a time when federal downpayment assistance programs may be facing funding cuts, crypto-backed downpayments are another avenue for customers with digital assets.
Miki Adams of CBC Mortgage Agency highlights rising downpayment costs as a major hurdle for homebuyers, particularly first-timers, and stresses the importance of federal and private programs in overcoming affordability challenges.https://t.co/z3UIhaeTTI
— Mortgage Professional America Magazine (@MPAMagazineUS) April 21, 2025
“We can help that customer, borrow against their bitcoin for the downpayment so they don't have to sell it,” Rupena said. “There’s a lot of great lenders and brokers that were able to qualify a customer for a conventional mortgage to cover 70% to 80%. They wonder how to come up with the other 20%. We can help them with that.”
Rupena notes that crypto mortgages must follow all the same regulations and guidelines as a regular mortgage, in addition to requirements they must follow in the custody of the crypto itself.
“We want to be that company that sits on the crypto lending side,” Rupena said. “Because there are things like collateral and custody and all these things that you have to monitor, which I wouldn't expect a broker to be able to do. They can focus on what they're good at, which is giving a mortgage. But we can help them on the other side of the transaction, which is the down payment.”
Rupena notes that customers who have amassed bitcoin likely won’t want to sell it for a downpayment, as that would subject them to capital gains tax. By using it as collateral for a loan, they won’t have to pay those taxes, and they will get to keep their bitcoin once the loan is paid off.
“A lot of these clients don't want to sell their Bitcoin,” Rupena said. “If the value of the Bitcoin continues to appreciate, which we believe it will. If that client sells $300,000 and Bitcoin goes up three or four times, it wasn't just $300,000. It's now 900,000 to $1.2 million. So that down payment turns out to be incredibly costly to that client.
As more buyers hit the market with digital assets, Rupena believes brokers will be able to attract more of them into the mortgage market by providing access to a product that allows them to use their bitcoin to secure some or all of the loan funds, without having to sell it.
“They don't want to sell it, because they think it's going to be worth significantly more,” Rupena said. “They think it will appreciate even more than the home itself. Having a good solution for them will be critical for working with these clients. And if you don't have a good solution for them, you may have a fantastic conversation with a client, but they're never going to transact.”
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