- Cryptocurrency-backed mortgages allow borrowers to use their cryptocurrency as collateral to purchase a home.
- You don’t need to sell your assets to get one of these mortgages, which means you’ll avoid tax consequences.
- If the value of your cryptocurrency falls too low, your lender can liquidate your assets.
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For those who have much of their wealth in CRYPTOCURRENCIES Like bitcoin, buying a home can present a challenge.
Most sellers are not looking to exchange their homes for cryptocurrencies, and the traditional
won’t let you use it for a down payment. The alternative, converting your digital currency to cash, can have significant tax consequences.
Now, some companies offer mortgages that use cryptocurrencies as collateral. With these types of loans, you can buy a house without having to cash out your crypto.
Crypto mortgages can be useful for those who have invested a lot in cryptocurrencies and not so much in other more traditional assets. But these types of loans are still very new and carry many risks.
How do crypto mortgages work?
Only a few companies offer cryptocurrency-backed mortgage products, and they will work slightly differently depending on the lender.