🚨 BREAKING: Newrez Accepts Crypto (February 2026)
January 13, 2026 announcement: Newrez, a major U.S. mortgage lender, will accept Bitcoin, Ethereum, and stablecoins as qualifying assets for non-agency lending programs starting February 2026.
Why This Matters:
- First MAJOR mainstream lender to accept crypto
- Signals industry-wide adoption coming
- Driven by millennial/Gen Z crypto ownership surge
- Easing regulatory environment under Trump administration
- Opens crypto mortgages to millions of borrowers
💎 What Is a Crypto-Backed Mortgage?
A crypto-backed mortgage allows you to use Bitcoin, Ethereum, or other cryptocurrencies as collateral to buy real estate without selling your crypto. You pledge your digital assets (typically $275K-$5M worth) and receive a traditional mortgage loan in USD.
Think of it like using stocks or bonds as collateral for a loan, but with cryptocurrency. The key advantage: you maintain exposure to potential crypto price appreciation while accessing liquidity to buy a home.
🔑 Two Types of Crypto Mortgages:
1. Crypto as Collateral (Pledged Model)
How it works: You transfer Bitcoin/Ethereum to lender's custody. Lender holds it as collateral. If crypto price drops 20-30%, you face margin call.
Lenders: Milo, Figure, Moon Mortgage, Ledn
✅ Pros:
- 0-10% down payment possible
- 100% financing available (Milo)
- No income verification needed
- Fast approval (7-14 days)
❌ Cons:
- Margin call risk if crypto drops
- Forced liquidation possible
- Higher rates (7-8.95%)
- Crypto locked in custody
2. Crypto as Qualifying Asset (Non-Collateral Model)
How it works: You prove ownership of crypto. Lender counts it as asset/income. NO collateral lockup. NO margin calls.
Lenders: LendFriend, Newrez (Feb 2026)
✅ Pros:
- NO margin calls ever
- NO liquidation risk
- Keep full crypto exposure
- Lower rates (6.5-7.25%)
- You control your crypto
❌ Cons:
- 10-25% down payment required
- Income verification needed
- Fewer lenders offer this
- Longer approval (2-3 weeks)
🚀 Ready to Get Pre-Approved?
Compare rates from multiple crypto-friendly lenders. See which model works best for your situation. Get pre-approved in 10 minutes.
Get Pre-Approved Now →🏦 Top 5 Crypto-Backed Mortgage Lenders 2026 (Ranked)
Here are the 5 best crypto mortgage lenders in January 2026, ranked by rates, terms, and overall value:
🥇 #1: LendFriend
BEST OVERALL📊 Key Stats:
- Rates: 6.5-7.25%
- Down Payment: 10-25%
- Model: Qualifying asset (NO collateral)
- Minimum Crypto: $100K
- Accepted Crypto: BTC, ETH, USDC, USDT
✅ Pros:
- NO margin calls EVER
- NO liquidation risk
- Lowest rates (6.5-7.25%)
- Keep full crypto exposure
🎯 Best For:
Crypto holders with $100K+ in Bitcoin/Ethereum/stablecoins who want ZERO margin call risk and the lowest possible rates.
🥈 #2: Milo
0% DOWN📊 Key Stats:
- Rates: 8.95%
- Down Payment: 0%
- Model: Collateral (margin call risk)
- Minimum Crypto: $275K
✅ Pros:
- 0% down payment
- 100% financing
- No income verification
- Fast approval (7-10 days)
🥉 #3: Figure
BLOCKCHAIN📊 Key Stats:
- Rates: 7-8.5%
- Down Payment: 10-20%
- Minimum Crypto: $150K
❌ Cons:
- State-limited (not in NY, TX)
- Margin call risk
🆕 #4: Newrez (Feb 2026)
MAINSTREAM📊 Key Stats:
- Rates: TBD (est. 6.5-7.5%)
- Launch: February 2026
- Accepted Crypto: BTC, ETH, stablecoins
#5: Moon Mortgage
BTC ONLY📊 Key Stats:
- Rates: 7-8%
- Accepted Crypto: Bitcoin ONLY
- Minimum: $200K
🚀 Compare All 5 Lenders & Get Best Rate
Get pre-approved with multiple crypto-friendly lenders. Compare rates, terms, and find the best deal. Takes 10 minutes.
Compare Lenders & Get Pre-Approved →💰 Crypto-Backed Mortgage Rates 2026
| Lender | Rate Range | Down Payment | Margin Call Risk |
|---|---|---|---|
| LendFriend | 6.5-7.25% | 10-25% | NO |
| Figure | 7-8.5% | 10-20% | YES |
| Moon | 7-8% | 10-20% | YES |
| Milo | 8.95% | 0% | YES |
| Traditional | 6.06% | 3-20% | N/A |
🤖 Maximize Your Crypto for Real Estate
Want to grow your crypto holdings faster to qualify for better mortgage terms? Professional traders use automated trading bots to maximize returns.
Why Automated Trading Matters:
- ✅ 24/7 Trading - Crypto markets never sleep
- ✅ Emotion-Free - No panic selling
- ✅ Faster Growth - Compound gains to reach thresholds
- ✅ Risk Management - Automated stop-losses
🚀 Recommended for Serious Investors:
XCryptoBot.com - AI-powered trading bot used by professional crypto investors to grow holdings for real estate.
Real Example: One investor grew $200K Bitcoin to $350K in 8 months, qualifying for better mortgage terms.
⚠️ 5 Major Risks of Crypto-Backed Mortgages (And How to Protect Yourself)
🚨 Risk #1: Margin Calls (COLLATERAL MODEL ONLY)
If Bitcoin/Ethereum drops 20-30%, lenders issue margin calls. You must add more crypto within 24-48 hours OR face forced liquidation.
📉 Real Example Scenario:
Initial Setup:
- Loan Amount: $500,000
- Bitcoin Collateral: $750,000 (150% LTV)
- Bitcoin Price: $75,000 per BTC
- You pledged: 10 BTC
What Happens if Bitcoin Drops 30%:
- New Bitcoin Price: $52,500 per BTC
- Your Collateral Value: $525,000 (10 BTC × $52,500)
- Required Collateral: $750,000 (150% of $500K loan)
- Shortfall: $225,000
Margin Call Issued:
- You must add 4.3 BTC ($225K worth) within 24-48 hours
- OR lender liquidates your 10 BTC at $52,500 = $525,000
- You lose 10 BTC + owe capital gains tax on gains
🛡️ Protection Strategies:
- Maintain 200% collateral buffer (not just 150%) to absorb 30-40% drops
- Use stablecoins (USDC, USDT) for 50% of collateral - zero volatility
- Keep emergency crypto reserves (20-30% extra) to cover margin calls
- Set price alerts at 15% drop levels to act before margin call
- Choose non-collateral model (LendFriend, Newrez) - ZERO margin call risk
💥 Risk #2: Forced Liquidation (Tax Bomb)
If you can't meet a margin call, lender automatically sells your Bitcoin/Ethereum at market price. This triggers capital gains tax on ALL appreciation, potentially costing $50K-$200K+ in taxes.
💣 Tax Bomb Example:
Your Bitcoin History:
- Bought 10 BTC at $20,000 = $200,000 cost basis
- Pledged as collateral at $75,000 = $750,000 value
- Bitcoin crashes to $50,000 = $500,000 value
- Margin call issued, you can't add more crypto
Forced Liquidation:
- Lender sells 10 BTC at $50,000 = $500,000 proceeds
- Capital gain: $500,000 - $200,000 = $300,000
- Federal tax (20% long-term): $60,000
- State tax (5% average): $15,000
- Total tax owed: $75,000
🛡️ Protection Strategies:
- Keep emergency cash reserves (6-12 months expenses)
- Use non-collateral model (LendFriend) - NO liquidation risk ever
- Consult crypto tax specialist BEFORE applying
- Consider tax-loss harvesting strategies if liquidation happens
💸 Risk #3: Higher Interest Costs ($48K-$343K More)
Crypto mortgages cost 0.5-3% more than traditional mortgages. On a $500K loan, that's $135-$954/month extra, totaling $48,600-$343,440 more over 30 years.
💰 Total Cost Comparison ($500K Loan, 30 Years):
Traditional Mortgage (6.06%):
- Monthly Payment: $3,025
- Total Interest: $1,089,000
- Total Paid: $1,589,000
LendFriend (6.5%):
- Monthly Payment: $3,160 (+$135)
- Total Interest: $1,137,600 (+$48,600)
Milo (8.95%):
- Monthly Payment: $3,979 (+$954)
- Total Interest: $1,432,440 (+$343,440)
📉 Risk #4: Crypto Volatility Risk
Your housing stability is tied to crypto price swings. Bitcoin has dropped 50-80% in past bear markets. This creates stress and potential financial instability.
🛡️ Protection:
- Diversify 50% into stablecoins (USDC, USDT)
- Only pledge 50% of total crypto holdings
- Have traditional income to cover payments if crypto crashes
⚖️ Risk #5: Regulatory Uncertainty
Crypto lending regulations are evolving. Future laws could impact loan terms, tax treatment, or lender operations.
🛡️ Protection:
- Choose established lenders (Milo, Figure, LendFriend)
- Review loan documents for regulatory change clauses
- Stay informed on crypto lending regulations
📋 How to Qualify for a Crypto-Backed Mortgage
✅ Qualification Requirements:
1. Minimum Crypto Holdings
- LendFriend: $100K minimum (lowest requirement)
- Figure: $150K minimum
- Moon Mortgage: $200K minimum (Bitcoin only)
- Milo: $275K minimum (highest requirement)
2. Credit Score Requirements
- Collateral Model (Milo, Figure): 620-680 minimum (some waive this)
- Non-Collateral Model (LendFriend): 640-680 minimum
- Better rates at 700+: Save 0.5-1% on rate
3. Income Verification
- Collateral Model: Often NOT required (crypto is the qualification)
- Non-Collateral Model: W-2, tax returns, pay stubs required
- Self-Employed: 2 years tax returns, bank statements
4. Debt-to-Income Ratio (DTI)
- Maximum DTI: 43-50% (varies by lender)
- Calculation: (Monthly debts + new mortgage) ÷ Gross monthly income
- Example: $8,000 income, $3,000 debts + $3,000 mortgage = 75% DTI (TOO HIGH)
5. Crypto Custody Requirements
- Collateral Model: Transfer crypto to lender's custody wallet
- Non-Collateral Model: Prove ownership via wallet signatures
- Accepted Wallets: Coinbase, Kraken, Gemini, hardware wallets
🚀 How to Apply for a Crypto-Backed Mortgage (Step-by-Step)
Choose Your Lender & Model
Decide between collateral model (Milo, Figure) or non-collateral model (LendFriend). Consider margin call risk tolerance and down payment ability.
💡 Recommendation:
Start with LendFriend for lowest rates and zero margin call risk. Only choose Milo if you need 0% down and can handle volatility.
Get Pre-Approved
Submit application with crypto holdings proof, credit check authorization, and income documents (if required).
- Wallet screenshots or API access
- Credit report authorization
- W-2 or tax returns (non-collateral model)
- Pre-approval in 24-72 hours
Find Your Property
Shop for homes within your approved loan amount. Work with real estate agent familiar with crypto buyers.
Transfer Crypto Collateral (If Required)
For collateral model: Transfer Bitcoin/Ethereum to lender's custody wallet. Lender monitors value 24/7.
⚠️ Important:
Verify wallet address multiple times. Use test transaction first. Crypto transfers are irreversible.
Close on Your Home
Complete underwriting, appraisal, title search. Sign closing documents. Receive keys!
- Underwriting: 2-3 weeks
- Appraisal: 1-2 weeks
- Closing: 30-45 days total
🚀 Ready to Start Your Crypto Mortgage Journey?
Get pre-approved with top crypto-friendly lenders. Compare rates, terms, and find the best deal for your Bitcoin/Ethereum holdings.
Get Pre-Approved in 10 Minutes →❓ Frequently Asked Questions
Do I have to sell my Bitcoin to buy a house?
NO! Crypto-backed mortgages let you keep your Bitcoin exposure while buying real estate. You pledge it as collateral or use it as a qualifying asset. You maintain full crypto exposure and potential price appreciation while accessing USD liquidity for home purchase.
What happens if Bitcoin crashes after I get the mortgage?
Collateral Model (Milo, Figure, Moon): Margin call if Bitcoin drops 20-30%. You must add more crypto within 24-48 hours OR lender liquidates your position. Non-Collateral Model (LendFriend, Newrez): NO margin calls, NO liquidation. Your loan terms stay unchanged. Crypto is not pledged as collateral.
Which crypto mortgage lender is best?
LendFriend is #1 for lowest rates (6.5-7.25%) and ZERO margin call risk. Milo is best for 0% down payment but has highest rates (8.95%) and margin call risk. Figure offers mid-range rates (7-8.5%) but limited to certain states. Newrez launching Feb 2026 will be major mainstream option.
Can I use Ethereum for a crypto-backed mortgage?
YES! All major crypto mortgage lenders accept Ethereum (ETH) in addition to Bitcoin (BTC). LendFriend, Milo, Figure, and Newrez all accept ETH. Some lenders also accept stablecoins (USDC, USDT) which have zero volatility and NO margin call risk.
How much crypto do I need for a crypto-backed mortgage?
Minimum requirements: LendFriend $100K (lowest), Figure $150K, Moon Mortgage $200K, Milo $275K (highest). For collateral model, you need 150-200% of loan amount in crypto. Example: $500K loan requires $750K-$1M in Bitcoin/Ethereum.
Are crypto-backed mortgages legal in the US?
YES! Crypto-backed mortgages are 100% legal in the United States. They are classified as Non-QM (Non-Qualified Mortgage) loans. Major lenders like Newrez accepting crypto starting February 2026 signals mainstream adoption and regulatory acceptance under Trump administration.
What are the tax implications of crypto-backed mortgages?
Collateral Model: NO tax event when pledging crypto as collateral. Tax event ONLY if liquidated (capital gains tax on appreciation). Non-Collateral Model: NO tax event at all - you just prove ownership. Mortgage interest is tax deductible up to $750K loan amount. Consult crypto tax specialist before applying.
Can I refinance a crypto-backed mortgage later?
YES! You can refinance to a traditional mortgage once you build equity or if rates drop. You can also refinance to another crypto lender for better terms. Refinancing costs 2-5% of loan amount. Many borrowers refinance within 5-10 years to traditional mortgages at lower rates.
Do crypto mortgages require PMI (Private Mortgage Insurance)?
Depends on down payment. Less than 20% down: PMI required (0.5-1.5% annually = $1,250-$3,750/year on $300K loan). 20%+ down: NO PMI required. Milo offers 0% down but requires PMI. LendFriend requires 10-25% down, so PMI may apply. Put 20% down to avoid PMI.
How long does it take to get approved for a crypto mortgage?
Collateral Model (Milo, Figure): 7-14 days (faster, less documentation). Non-Collateral Model (LendFriend): 2-3 weeks (income verification required). Total closing time: 30-45 days from application to keys. Faster than traditional mortgages (45-60 days).
Can I get a crypto-backed mortgage if I'm self-employed?
YES! Collateral Model: Perfect for self-employed - NO income verification needed. Crypto holdings are the qualification. Non-Collateral Model: Requires 2 years tax returns and bank statements. Self-employed borrowers often prefer collateral model (Milo, Figure) for easier approval.
What states allow crypto-backed mortgages?
Available Nationwide: Milo, LendFriend, Newrez (Feb 2026). State-Limited: Figure (NOT available in NY, TX, and several other states). Moon Mortgage: Most states. Check with lender for specific state availability. Regulations vary by state.
Should I choose a crypto mortgage or traditional mortgage?
Choose Crypto Mortgage if: You have $100K+ in Bitcoin/Ethereum, want to keep crypto exposure, can't verify income easily, or need 0% down. Choose Traditional Mortgage if: You don't have crypto, want lowest rates (6.06%), can verify W-2 income, or want zero volatility risk. Most borrowers choose traditional for lower rates and stability.
💡 Alternatives to Crypto-Backed Mortgages
Before committing to a crypto-backed mortgage, consider these alternatives that may offer better terms:
1. Traditional Mortgage (6.06% Rate)
Lowest rates available. Requires W-2 income, 3-20% down payment, 620+ credit score. Save $135-$954/month vs crypto mortgages. Best for stable income borrowers.
Compare Traditional Mortgage Rates →2. Sell Crypto & Buy with Cash/Traditional Mortgage
Liquidate crypto, pay capital gains tax (15-20%), use proceeds for down payment or full purchase. Pros: Lowest mortgage rates, no margin call risk. Cons: Lose crypto exposure, pay taxes now.
Example: Sell $500K Bitcoin (cost basis $200K) = $300K gain × 20% tax = $60K tax owed. Net proceeds: $440K for down payment.
3. HELOC (Home Equity Line of Credit)
If you already own a home, use HELOC to access equity for new purchase. Rates 7-9%, no crypto required. Revolving credit line. Good for investment properties.
Learn About HELOC Rates →4. Portfolio Loan (Stock/Bond Collateral)
Use traditional investment portfolio (stocks, bonds, mutual funds) as collateral. Rates 5-7%, lower than crypto mortgages. Less volatile than crypto. Available from private banks (Morgan Stanley, Goldman Sachs).
5. Wait & Save for Traditional Down Payment
Keep crypto holdings, save cash for 20% down payment, get traditional mortgage at 6.06%. Slower but cheapest long-term option. Avoid $48K-$343K in extra interest costs.
🎓 Expert Recommendations
📋 Our Verdict:
Crypto-backed mortgages are a SPECIALIZED tool for crypto holders who want to maintain exposure while buying real estate. They are NOT for everyone.
✅ GOOD FIT IF:
- You have $100K-$500K+ in Bitcoin/Ethereum
- You believe crypto will appreciate 20-50%+ in next 5-10 years
- You can afford 10-25% down payment (non-collateral model)
- You have emergency reserves to cover potential margin calls
- You're self-employed and can't easily verify income
- You choose LendFriend for ZERO margin call risk
❌ BAD FIT IF:
- You have less than $100K in crypto
- You can't afford extra $135-$954/month in interest costs
- You have stable W-2 income (get traditional mortgage instead)
- You're risk-averse and can't handle margin call stress
- You plan to stay in home 20+ years (extra interest adds up)
- You're choosing Milo at 8.95% rate (too expensive for most)
💡 BEST STRATEGY:
1. Start with LendFriend (6.5-7.25%, no margin calls) if you have $100K+ crypto and stable income.
2. Use 50% stablecoins (USDC, USDT) for collateral to eliminate volatility risk.
3. Plan to refinance to traditional mortgage within 5-10 years when you build equity.
4. Keep emergency reserves equal to 6-12 months expenses in case of crypto crash.
⚠️ For 90% of borrowers, a traditional mortgage at 6.06% is the better choice for building wealth through home equity.
📞 Next Steps: Should You Get a Crypto-Backed Mortgage?
🎯 Final Takeaway
Crypto-backed mortgages are a powerful tool for crypto holders who want to buy real estate WITHOUT selling their Bitcoin/Ethereum. With rates of 6.5-8.95% and options for 0-100% financing, they provide unprecedented flexibility.
Key Decision Factors:
- LendFriend (6.5-7.25%): Best overall - lowest rates, ZERO margin calls, $100K minimum
- Milo (8.95%): Best for 0% down - but highest rates and margin call risk
- Newrez (Feb 2026): Major mainstream lender entering market - watch for rates
- Margin Call Risk: Choose non-collateral model (LendFriend) to eliminate this entirely
- Extra Interest Cost: $48K-$343K more over 30 years vs traditional mortgage
Bottom Line: If you have $100K+ in crypto and believe it will appreciate significantly, crypto mortgages let you have your cake and eat it too. Just choose LendFriend to avoid margin call nightmares.
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