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+--- Thread: How to buy a home with a crypto-backed loan (/showthread.php?tid=6302224)
How to buy a home with a crypto-backed loan - Stanley - Jul 5, 2025
How to buy a home with a crypto-backed loan
Discover platforms offering crypto-backed mortgages, allowing you to use digital assets like BTC and ETH to finance real estate purchases without selling your holdings.
https://cointelegraph.com/news/how-to-buy-a-home-with-a-crypto-backed-loan?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
RE: How to buy a home with a crypto-backed loan - Braco22 - Jul 5, 2025
This is something that will transform the lending sector. Now instead of selling 2 BTC to buy your dream home, you can just take a loan against that BTC and enjoy it appreciate over the time, while your dream home also appreciates but the USD you have taken a loan depreciates. WIN, WIN and WIN. Triple win situation!
RE: How to buy a home with a crypto-backed loan - Omniscient - Jul 6, 2025
I've already looked into these companies, it's coming where you'll borrow from your BTC as collateral and never actually sell your BTC.
Bitcoin will be real wealth going forward.
RE: How to buy a home with a crypto-backed loan - Braco22 - Jul 7, 2025
I am just unsure, is your Bitcoin the ONLY collateral? Or you have to collateralize the home as well?
RE: How to buy a home with a crypto-backed loan - Dirty - Jul 7, 2025
(Jul 7, 2025 02:48 AM)Braco22 Wrote: I am just unsure, is your Bitcoin the ONLY collateral? Or you have to collateralize the home as well?
I assume that will be the end goal eventually, But I have not yet looked at any of these companies to say so. Probably will have to put up other collateral or be ready to throw a pile of money at it if BTC crashes while this loan is going on?
RE: How to buy a home with a crypto-backed loan - Braco22 - Jul 7, 2025
(Jul 7, 2025 04:39 AM)SIM-3719807 Wrote: I assume that will be the end goal eventually, But I have not yet looked at any of these companies to say so. Probably will have to put up other collateral or be ready to throw a pile of money at it if BTC crashes while this loan is going on?
They'll eventually ask you to over-collateralize the loan if it's BTC only, like 160% of the home's worth, or combine the home + BTC. Either way, you don't sell your BTC so it's a VERY GOOD news in terms of adoption in the housing market.
RE: How to buy a home with a crypto-backed loan - Omniscient - Jul 7, 2025
(Jul 7, 2025 08:13 AM)Braco22 Wrote: They'll eventually ask you to over-collateralize the loan if it's BTC only, like 160% of the home's worth, or combine the home + BTC. Either way, you don't sell your BTC so it's a VERY GOOD news in terms of adoption in the housing market.
From my understanding you get about 50% of your BTC deposit towards a loan.
For example, you give them 1 BTC and that's held as about $50k in collateral. When you pay off the loan, you get the 1 BTC back.
For a mortgage though not yet sure.
I have gathered a list of Crypto-backed loan sites.
https://app.morpho.org/borrow?network=mainnet
https://unchained.com/
https://www.coinbase.com/loans
https://sovryn.com/zero
https://saltlending.com/
https://rocko.co
https://www.milo.io/rates/refinance-a-home/
I have not used any of these. But I watch the market just in case.
The SaltLending to me seems one of the better ones. You get 70% LTV (Loan to value) and rates are as low as 9%.
Technically someone could have 1 BTC, get a loan $70k at 9%, then buy .7 BTC with it. Then do that again with another company.
AI Quote: Absolutely, let’s run through it again with 1 BTC = \$108,000 as the starting price.
Step 1: Initial Setup
1 BTC = \$108,000
70% LTV loan:
\$108,000 × 0.70 = \$75,600 Buy more BTC with loan:
\$75,600 / \$108,000 = 0.7 BTC
Total BTC controlled:
1 BTC (collateral) + 0.7 BTC (bought) = 1.7 BTC
Step 2: After 3 Years (BTC = \$250,000)
Total BTC held: 1.7
Value:
1.7 × \$250,000 = \$425,000
Step 3: Loan Repayment After 3 Years
Principal: \$75,600
APR: 9% (compounded yearly)
Amount Owed:
\$75,600 × (1.09)^3 ≈ \$75,600 × 1.295 = \$97,902
In BTC at \$250,000:
\$97,902 / \$250,000 = 0.3916 BTC needed to repay
Step 4: BTC Remaining After Repayment
Initial total: 1.7 BTC
After repaying loan:
1.7 BTC - 0.3916 BTC = 1.3084 BTC
Value in USD:
1.3084 × \$250,000 = \$327,100
Step 5: Compare to HODL
If you just held 1 BTC:
1 BTC × \$250,000 = \$250,000
Step 6: Gain from Leverage
Leverage scenario: \$327,100
HODL scenario: \$250,000
Extra gain: \$327,100 - \$250,000 = \$77,100
Return on your original \$108,000:
(\$327,100 - \$108,000) / \$108,000 ≈ 202.87% gain
Summary Table
| Scenario | End BTC | End USD value | After loan payoff | Net USD value |
| -------- | ------- | ------------- | ----------------- | ------------- |
| HODL | 1 | \$250,000 | N/A | \$250,000 |
| Leverage | 1.7 | \$425,000 | Pay back \$97,902 | \$327,100 |
Bottom Line:
Leverage turns 1 BTC into 1.3084 BTC after all is paid back, if BTC moons from \$108k to \$250k in 3 years at 9% APR.
Your USD gain from leverage is \$77,100 higher than just HODLing.
* But: If BTC crashes or is flat, your downside risk is bigger, and you risk liquidation.
Want to see this with different LTV or APR? Or a price that doesn’t double?
RE: How to buy a home with a crypto-backed loan - Braco22 - Jul 8, 2025
Yeah, a lot of DeFi chains have borrowing against BTC in form of wBTC and I think they give you around 75% and liquidation call is at 80%. The interest rate is I think variable and when the market is not booming like crazy it hovers around 5-7%.
I am currently actively borrowing on Binance for the past 3 years, and as soon as we see an explosion in the market the borrow interest rates tend to shoot up to 50-60% per year. When the market is sideways or in a down turn, since let's say end of December the rates have been around 4.5 - 6.5%. The only downturn is that the interest rate is paid hourly, and is compounding hourly as well. But Binance let's you have 78% initial LTV while the liquidation LTV is at 91%.