Don't Sell Your Bitcoin to Buy a House: Use a Crypto Mortgage Instead

Bitcoin has turned early adopters into millionaires and even late adopters have built significant wealth thanks to Bitcoin and Ethereum. For many, the story began with a few thousand dollars and a leap of faith into a digital asset most of the world hadn’t heard of. Fast forward a decade, and that small investment has ballooned into a multi-million-dollar portfolio. But now, these same investors face a new challenge: how to buy traditional assets, like a home, without sacrificing their most valuable asset.

Selling Bitcoin (or Ethereum, or any other major cryptocurrency) just to buy a house with all cash feels like a betrayal of the strategy that got you here. Yet most mortgage lenders still don't recognize crypto as usable income or assets. That forces many crypto holders to either sell and trigger massive capital gains taxes—or settle for lenders who require them to lock their portfolio away as untouchable collateral.

There is a better way. And it doesn’t require liquidating your portfolio, giving up control of your crypto, or working with lenders who don’t understand your finances.

Why Selling Your Bitcoin to Buy a Home Is a Terrible Trade

If you bought Bitcoin at $1,000 and it’s now worth $120,000, selling that asset means handing over a chunk of your upside to the IRS. Long-term capital gains taxes can wipe out 20–30% or more of your profits. And for what? To buy a house with traditional financing that doesn’t even consider the asset that created your wealth?

That approach ignores the fundamentals of wealth preservation. Why pay hundreds of thousands in taxes and give up future appreciation just to buy real estate—an asset class that you might also believe in, but which hasn't performed nearly as well as your crypto?

This dilemma is what’s kept many crypto millionaires on the sidelines of the housing market. Either they don’t want to sell, or they’ve been told by traditional banks and lenders that they simply "don’t qualify" without tax returns, W-2s, or documented income that fits inside a conventional underwriting box.

What Is a Crypto Mortgage?

Crypto mortgages are home loans that allow borrowers to qualify based on their crypto assets. This is especially important for many crypto millionaires who no longer have traditional W-2 income to support the purchase of a $2 million or $3 million home. They need mortgage solutions that reflect the strength of their Bitcoin or Ethereum holdings, not outdated income documentation rules. Depending on the lender, this may take one of two forms:

1. Collateral-Based Crypto Loans — You pledge your Bitcoin, Ethereum, or other digital assets into a custodial account that the lender controls. It’s treated like cash collateral and allows you to borrow against it—but you lose access to those funds during the loan term.

2. Asset Depletion Model (the LendFriend approach) — Rather than locking up your crypto, your holdings are treated like investment income. Lenders calculate a simulated monthly income based on the value of your portfolio. No need to sell. No need to transfer it into someone else’s control.

The collateralized crypto loans are the most popular approach. While functional, this approach comes with risk and HIGH rates. If your portfolio drops in value, your loan could be called or denied. If it appreciates, you don’t benefit during the loan term. And in either case, you lose liquidity and control over your funds. Plus, the rates are typically 3-4% higher than conventional loans.

The Problem: Most Asset Lenders Don’t Count Crypto as Eligible Assets

Despite crypto’s market cap and staying power, it remains a black box to many lenders. Most traditional banks won’t count it toward your assets at all. Even many non-QM lenders exclude Bitcoin and Ethereum from their asset depletion formulas. That means crypto holders with seven-figure wallets still get turned down for basic mortgages.

Why? Because the mortgage industry is slow to adapt. Most underwriting engines were built for W-2 employees, not for self-directed investors with unconventional portfolios. And when crypto is mentioned, it’s often dismissed as too volatile or unverified to be relied upon.

Recent political movements, like the Trump-supported GENIUS Act and the CLARITY Act, aim to change this. These bills would legitimize digital assets in banking, taxation, and lending. But even if passed, regulatory adoption takes time—and homebuyers don’t have years to wait.

Enter LendFriend: The Better Crypto Mortgage Solution

At LendFriend Mortgage, we understand how wealth works in 2025. Crypto is a real asset class. It creates real purchasing power. And you shouldn’t have to sell it just to buy a house.

We’ve built our reputation on delivering customized mortgage solutions for complex financial profiles. With billions of dollars in funded volume and hundreds of crypto-backed home loans successfully originated, our team knows how to help high-net-worth borrowers turn digital wealth into real estate ownership.

Our crypto mortgage solution is built for investors who want to keep their crypto and still access traditional real estate. Using an asset depletion model, we calculate monthly qualifying income based on your verified crypto portfolio—without requiring you to sell or pledge your assets.

Example of a Typical LendFriend Crypto Mortgage:

Say you hold $5 million in Bitcoin, purchased when BTC was $1,000 and now valued at $120,000 per coin. Our depletion model can translate that into over $30,000 in monthly income. Based on today’s market, that qualifies you for a mortgage well over $2 million, even if you have no W-2 income or traditional employment documentation.

And unlike most crypto lenders, we don’t demand high rates. Our crypto mortgage rates are typically just 0.5% higher than conventional mortgages, and often 2–3% lower than competitors like Milo or Ledn.

You get:

• Full control over your assets

• No capital gains taxes from selling

• Fast approvals without tax returns or pay stubs

See how it works here

Just recently, a LendFriend client with excellent credit locked in a 7% mortgage using our crypto mortgage program—without selling a single satoshi. It’s real proof that you don’t have to overpay or give up your upside just to get a home loan.

Why This Model Matters

Crypto investors shouldn’t have to jump through outdated hoops. The financial system has always favored conformity: regular income, predictable assets, low risk. But that’s not how today’s wealth is being built. Tech founders, digital nomads, early-stage investors, and crypto whales operate outside the W-2 world—and their mortgage options should reflect that.

Our crypto mortgage program is built for:

• High-net-worth individuals with large crypto portfolios

• Investors who want to diversify into real estate

• Borrowers without traditional income documentation

• Buyers who value liquidity and tax efficiency

With LendFriend’s crypto mortgage, you don’t have to compromise. You can keep your long-term position in Bitcoin or Ethereum and still close on a house in 30 days or less.

Why Work With LendFriend Mortgage

At LendFriend Mortgage, we tailor mortgage strategies to fit your life—not rigid financial dogma. Whether you’re buying your first home, moving up, or investing, we help you secure competitive rates and terms that balance affordability with wealth-building potential.

From pre-approval to closing—and beyond—we provide guidance rooted in real-world market expertise. Explore our LendFriend Learning Center for practical, up-to-date advice that helps you win in any market.

You can also sign up for our Rate Alerts to get our weekly mortgage rates and market updates sent directly to your phone.

The Bottom Line: Keep Your Crypto, Own the Home

You don’t need to sell off your future to secure your present. The old rules don’t apply to new wealth, and LendFriend is helping lead the change.

If you’ve been told you don’t qualify because your income is "unconventional," or because your assets aren’t "recognized," it’s time to talk to a lender that understands how crypto holders actually live, earn, and invest.

Don’t sell your Bitcoin to buy a home. Let us show you how to turn your digital wallet into a mortgage approval—without the taxes, the delays, or the red tape.