Author: Michael BernsteinPublished:
If you’ve been holding Bitcoin or Ethereum for years, you've likely built a significant seven figure net worth - which is an amazing feat. But when it comes time to buy a house, you may quickly discover that traditional lenders don’t know how to handle your wealth.
Your lifestyle and unconventional asset mix can cause friction with traditional banks that still expect tax returns and substantial W2 pay stubs. The good news? In today's market, there are lenders who understand the importance of maintaining your crypto position—who can qualify you for the mortgage you want without forcing you to sell any BTC or ETH.
Asset depletion mortgages, especially when paired with digital wallets and broker expertise, can turn your crypto gains into mortgage approval without triggering capital gains or draining your portfolio.
This is how smart crypto investors are buying homes in Austin, Miami, and beyond—without cashing out a single coin.
What Is Asset Depletion?
Asset depletion is a loan qualification strategy that turns your liquid assets—like crypto, stocks, or savings—into income for underwriting purposes.
Instead of showing a paycheck, you show your balance in your Coinbase account.
The mortgage broker calculates a theoretical monthly income based on your asset value, typically by dividing it by a set term—often 84 months for crypto or brokerage assets. This approach is designed for high-net-worth individuals, early retirees, self-employed entrepreneurs, and yes, crypto investors.
You don’t actually have to withdraw the funds. The asset remains in your name and, in the case of Bitcoin , can continue to appreciate while your mortgage is processed.
How Smart Mortgage Lenders Turn Bitcoin Into Income
Let’s say you hold $3 million in Bitcoin in a Coinbase account.
If the lender applies a 50% discount (to account for any market volatility) and uses a 84-month term to calculate income, that translates to roughly $18,000/month in qualifying income (($3M*50%)/ 84).
From an underwriting standpoint, that’s more than enough to qualify for a $1M mortgage at today's roughly 7% interest rates—assuming your credit and reserves meet the lender’s guidelines.
The lender will typically verify:
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The crypto asset is held in Coinbase, a secure, U.S.-based exchange.
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The account is in your name (or a revocable trust).
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The asset has been seasoned (held) for at least 90 days.
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The cryptocurrency must be Bitcoin or Ethereum (no Fartcoin allowed unfortunately)
No liquidation required. No capital gains. No explaining your staking yield to a loan officer.
Examples of How Asset Depletion Turned Digital Wealth Into Keys
Austin Tech Investor Buys $2M Home
A 34-year-old early crypto investor holds $5M in Bitcoin. With no traditional income but excellent credit, he uses a 60-month asset depletion calculation to generate $40,000/month in qualifying income. After his $400,000 downpayment, that income allows him to qualify for a $1.6M mortgage with plenty room to spare.
Miami NFT Artist Buys $1.1M Condo
A self-employed digital artist has $2.2M in a coinbase wallet and an additional $500,000 in stocks. While traditional lenders balked at her tax returns, a mortgage broker used the combined $1.9M in assets to qualify her with an asset depletion mortgage. She closed in under 30 days.
Why This Strategy Works for Crypto Investors
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You Keep Your Coins: Asset depletion loans allow you to use your crypto as qualifying income without liquidating your holdings. That means your Bitcoin or Ethereum can remain in your account, continue to appreciate, and avoid the hassle of on-chain movement or taxable events.
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Tax Efficient: Selling crypto to buy a home can trigger significant capital gains taxes. With asset depletion, you sidestep that entirely—qualifying for a mortgage without selling, swapping, or incurring IRS reporting headaches.
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Flexible and Fast: Asset depletion loans can be tailored to your specific asset mix, and with an experienced mortgage broker, the entire process—from application to closing—can be completed in as little as 21 days.
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No Need for Traditional Income Docs: Whether you’re a full-time investor, an early retiree, or self-employed, you don’t need to provide tax returns, W2s, or profit-and-loss statements to qualify—just your verified asset balances.
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Works With Other Assets: Crypto isn’t the only asset that counts. Lenders can combine your digital assets with cash, brokerage accounts, retirement accounts or trust funds to build a more robust income profile for qualification..
While crypto-backed mortgages are still rare (see our post on the crypto mortgage era), asset depletion offers a much more mainstream, proven path to homeownership.
What Lenders Accept Crypto for Asset Depletion?
Most large retail banks still don’t know what to do with crypto. But at LendFriend, we do.
We’ve built an entire process around helping crypto investors qualify—without selling off their Bitcoin, without triggering taxes, and without having to explain your DeFi holdings to a traditional underwriter. Our team works with private lenders, non-QM banks, and portfolio programs that specifically allow for crypto-based asset depletion.
Whether you're holding $1M on Coinbase or split across multiple wallets, we know how to document it, package it, and close the deal. We’ve helped crypto entrepreneurs, traders, and long-term HODLers buy $1M+ homes in Texas, Florida, California, and beyond—with zero liquidation required.
If your bank doesn’t get it, LendFriend will.
Why Work With a Mortgage Broker Like LendFriend
Crypto wealth is still unfamiliar territory for most banks, and as many crypto investors have seen, banks are very slow to adapt to new ideas. A good broker acts as your translator—packaging your financials, matching you with the right lender, and guiding you to the finish line without headaches or holdups.
At LendFriend, we’ve structured loans for:
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Self-employed founders with large ETH reserves
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Retired miners holding BTC across multiple exchanges
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Artists and creators with NFT royalties and stablecoin holdings
We know how to make digital assets speak the language of underwriting.
FAQ: Asset Depletion with Crypto
Do I have to sell my crypto? No. As long as the asset is liquid and verifiable, you can use it for income qualification without liquidating.
Which wallets or exchanges are accepted? As of now, only Coinbase is used permitted for qualification purposes. Wallets must provide verifiable statements.
What’s the minimum crypto balance I need? Depends on the loan amount and other assets. But as a general rule, $1M in liquid crypto = ~$6,000/month in qualifying income.
Can I combine crypto with other assets? Absolutely. You can mix crypto with checking, brokerage accounts, or trust assets to increase your income.
Is this the same as a crypto mortgage? No. Crypto mortgages use your crypto as collateral. Asset depletion uses it as income. It's safer and more broadly accepted.
How fast can I close? Typically 30 days with the right broker and clean documentation.
The Bottom Line: Let Your Crypto Buy You a Home
You didn’t ride the volatility of Bitcoin, ETH, or altcoins just to have a traditional bank tell you “no.” With asset depletion, your crypto wealth works for you—without having to sell, cash out, or explain airdrops to a loan officer.
This is the new playbook for digital millionaires: Keep your portfolio intact, avoid capital gains, and qualify for the luxury home you want based purely on the value of your assets.
Whether you're holding coins from the 2017 bull run or built a war chest during the DeFi summer, your crypto can now fund your next chapter in real estate. Buy a new-build in Austin’s tech corridor, a waterfront condo in Brickell, or a hillside retreat in Malibu—all without losing a single satoshi.
Asset depletion is the bridge between digital wealth and real property. And with the right broker, it’s faster, easier, and more flexible than you’d think.
Buying with Bitcoin is easier than you think. Schedule a call with me today or get in touch with me by completing this quick form, and we'll help you get started today.
