Qualify-with-Crypto

Qualify-with-crypto is a mortgage model in which your Bitcoin and other digital assets are counted toward loan qualification (as reserves or as an income stream via asset depletion) without being pledged as collateral. Because your crypto is never locked up or exposed to a margin call, you keep full control of it during the loan.

How it differs from a collateralized Bitcoin mortgage

In a collateralized Bitcoin mortgage, your BTC is pledged to secure the loan and can be liquidated if its price falls. In a qualify-with-crypto loan, the lender instead uses your holdings to demonstrate financial strength, applying a conservative discount (often around 50%) to the crypto's value and converting it into qualifying income or reserves. The mortgage itself is secured by the property, like a conventional loan.

The trade-offs

The upside is no margin call, no forced liquidation, no ongoing collateral monitoring, and no taxable sale of your Bitcoin. The trade-off is that you typically still need a cash down payment, a qualifying credit score, and standard property underwriting; the crypto helps you qualify rather than replacing the down payment.

Who offers it

Qualify-with-crypto and asset-depletion structures are offered by mortgage brokers and non-QM lenders such as LendFriend. They contrast with collateralized programs like Milo's, which lend against pledged Bitcoin. The comparison data on this site flags which model each mortgage lender uses.