How To Use Bitcoin To Buy Your Next Home

By John Lyons

John Lyons, a distinguished broker associate at Baird & Warner, has carved a niche in the Chicago real estate market with his comprehensive, client-first approach. With over $130 million in career sales, Lyons has a proven track record in assisting a diverse range of clients, including luxury home buyers, first-time buyers, sellers looking to move up, and investors.

Bitcoin is everywhere in the news. It just hit a major milestone, breaking past $100,000 for the first time. Companies and even entire nations are adopting Bitcoin as digital money. But here’s a question many Bitcoin holders are asking: How can you buy a house with Bitcoin without selling any of it? The good news is there’s a way to do it and it is called Bitcoin mortgages. Let me explain how they work.

What is a Bitcoin mortgage? Imagine you have a treasure chest full of gold coins, which refers to your Bitcoin holdings. You believe these coins will become more valuable over time. However, you want to buy a house but you don’t have enough money or cash flow to do so. Normally, the best option is to sell some of your gold to afford it.

The downside to this is there’s a chance that the price of Bitcoin will rise and you will miss out on it. But, what if you didn’t have to sell your treasure to get the house? This is where Bitcoin mortgages come in.

A Bitcoin mortgage lets you keep your Bitcoin. You use it as collateral (think of it like a safety deposit box for the bank). The lender holds your Bitcoin and gives you cash to buy the house. You don’t lose out on Bitcoin’s potential value, and you get the home you want. It’s a win-win situation for you because you get your house without selling your Bitcoin.

What’s the risk? If Bitcoin’s price drops too much, the lender might ask you for more Bitcoin or cash to keep the loan safe. If you can’t add more, they might sell some of your Bitcoin. The good news is some lenders offer special protections that give you extra time to resolve the situation before anything drastic happens.

Who offers these mortgages? There are two companies that offer Bitcoin mortgages: Milo and Ledn. They provide programs that allow you to mortgage your Bitcoin to buy property. So, make sure to take note of them if you are planning to buy a home but you don’t want to sell your digital currency.

Bitcoin mortgages are a game-changer because you can keep your investment growing while owning a home at the same time. If you own some Bitcoin, and you’re interested in owning your own home, look into Bitcoin mortgages to see if they’re the right fit for you. If you have any questions or need more information, feel free to call or text me at (773) 558-7133.