How to utilize crypto assets when buying a house? What are crypto-backed mortgages?

Buying a house with Bitcoin - Bitcoin-backed mortgages

Bitcoin has had a great return of investment since its launch in 2009, and Bitcoin adoption is growing faster than ever, even in a bear market period in 2022. We are used to seeing Bitcoin prices on finance TV channels screens along with other major currencies and commodities. You believe that Bitcoin still has a long way to go, and you are a Bitcoin hodler. But you might happen to face some extra urgent expenses or a planned investment like buying your dream house.

Buying a house with a mortgage is beyond an investment; it is a necessity. There are real estate development companies accepting crypto payments and financial institutions accepting Bitcoin as a down payment for mortgage loans. You can even collateralize your Bitcoins and get a loan to use it as a down payment for the mortgage.

Bitcoin use is growing in the real estate market. Options are increasing to utilize your Bitcoin and crypto-assets. Read this article to see your options.

Buying a real estate in Bitcoin

The latest news shows that Brazil’s one of the biggest real estate development companies, GAFISA, now accepts payments in Bitcoin and other major cryptocurrencies like Ethereum (ETH), Cardano (ADA), XRP, and Solana (SOL). Crypto adoption is high in Brazil because of the country’s currency REAL’s instability in recent years. Brazil is the sixth biggest country in terms of on-chain value transacted. According to the company, accepting Bitcoin is an innovative solution for current trends and a great way to remove intermediaries.

Real estate brokerages across the States started accepting Bitcoin too. Harbor Custom Development Inc. is a nationwide US real-estate development company that announced that they would accept Bitcoin, Ethereum, and Stablecoins in January 2022. Magnum Real Estate Group from New York, Kuper Sotheby’s International Realty from Texas, and Sand Key Realty from Florida are only a few of the real estate brokerage firms accepting crypto payments.

Bitcoin-backed mortgages

Crypto Savings & loans platform Ledn now offers crypto-backed mortgage loans. The number of crypto-backed mortgage loan providing companies is increasing. Milo is a new start-up aiming to provide mortgage loans by accepting Bitcoin, Ethereum, and some stablecoins as collateral.

The good thing about Bitcoin-backed mortgages is that you don’t need to sell your Bitcoins while you are given credit to purchase a house. By doing so, you can benefit from the appreciation potential of Bitcoin in the long run while making a secure real-estate investment. It is a great way to diversify your assets.

Another way to collateralize your crypto assets is using crypto Savings & Lending platforms like Celsius Network, BlockFi, Coinloan, or Nexo. You can use your crypto assets as collateral to borrow cash and then use it for the down payment. Those platforms offer loans at a reasonable rate against holding your crypto assets.

Advantages of Bitcoin-backed mortgages

By using a Bitcoin-backed mortgage or a loan, you will be holding your crypto assets and won’t miss the opportunity for a potential increase in crypto value. You will also have a more diversified portfolio by having an asset like real estate, which is a very secure investment and increases in the long-term value. So, volatile crypto assets and the stable real-estate asset will be a balanced portfolio.