Bitcoin Home Loan – Buy Property with BTC Without Having to Sell

Home Loan against BTCWho would have thought just a few years ago that Bitcoin would one day be worth several thousand dollars? Early investors are happy now, and many of them are people who might otherwise never have had much money. But Bitcoin has given one or the other a nice sudden fortune and now the question often arises how best to profit from the value of one’s Bitcoin assets.

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How To Buy Real Estate Without Having To Sell Bitcoin

Some financial service providers have also been working on this question and are now offering home loans that can be secured with Bitcoin as collateral. This concept is a great solution especially for those who don’t want to sell their Bitcoin but still want to benefit from the current rate.

Sure, you can of course sell your Bitcoin on a Bitcoin exchange and then get the corresponding US Dollars paid out in order to buy yourself a house or invest in rental property. But then the Bitcoins are gone. That’s exactly what many crypto enthusiasts want to avoid. As HODLers they don’t dare to sell their Bitcoin assuming that the value will continue to rise in the long run. And yet they would of course like to benefit from the current value.

Crypto Home Loan Companies

Now let’s take a look at which companies offer Bitcoin Home Loans and at what conditions. In addition, we have researched whether early partial repayment of the deposited Bitcoin would be possible if the BTC price were to rise in the longer term.

Loans from these companies are used by customers to either buy a home for their own use or to invest in rental properties for cash flow. Furthermore such Bitcoin home loans are used to renovate or extend a property.

Bitcoin Home Loan Comparison

Here are the most important parameters in comparison at a glance:

Max. Loan Term
Loan Amount
Interest (annual)
Max. Loan Term:

12 months
Loan Amount

$10,000 to $100M
Interest (annual)

4.5 – 11.25%


Max. Loan Term:

3 years
Loan Amount

$100 to unlimited
Interest (annual)

5 – 12%

Max. Loan Term:

12 months
Loan Amount

$500 to $2M
Interest (annual)


Unchained Capital
Max. Loan Term:

5 years (USA only)
Loan Amount:

$10,000 to unlimited
Interest (annual):

8.5 – 13.5%


Max. Loan Term:

3 years
Loan Amount

€250 to €250,000
(higher on request)
Interest (annual)




Advantages of BTC backed Home Loans at a Glance:

  • Ability to keeping Bitcoin for the long term
  • Tax benefits compared to selling BTC in order to buy property
  • Possibility to renovate property
  • Possibility to diversify investment portfolio
  • Instant loan, no appointments, no waiting
  • Loans without Credit Check

Save Taxes by not Performing a BTC Sale

An additional problem occurs when you sell your Bitcoin on an exchange market: The taxes on this profit. This means that you would sell your Bitcoin, then give a considerable part of it to the state and buy a home from the rest.

A Bitcoin Home Loan avoids this problem among other things. Instead of selling something, you take out a loan, and no capital gains tax or income tax is due on it. So you save a lot of taxes by the loan, depending on which country you live in.

Real Estate often not yet directly purchasable with Cryptocurrency

Although we’ve all heard of cases where properties have been purchased with Bitcoin, this is not yet the rule. There might be companies in Dubai offering Luxury apartments for Bitcoin, but unless this is what you want to buy, you’ll probably rather find real estate that needs to be payed with fiat money. So it’s quite likely that you won’t be able to pay a property directly with Bitcoin. You’d rather have to go the cumbersome and tax unfavorable way to sell your BTC on an exchange platform for US Dollars. Since Bitcoin payments are not yet that common in the real estate branch, a Bitcoin loan is enormously advantageous.

Paying off a Bitcoin Home Loan – Best Case Scenario

If the Bitcoin price should actually still live a drastic further rise on a long-term basis, paying off a Bitcoin home loan at the end of the loan duration shouldn’t be a problem, especially when the course has at least doubled.

If the course should rise strongly, borrowers should usually be able to ask for a partial refund of their Bitcoin pledge before the loan ends.

We’ve asked all crypto loan firms regarding that topic and each of them confirmed that they offer the option of partially refunding the Bitcoin collateral under certain circumstances. Those details can be found in the listing of companies further below.

Assuming that Bitcoin would already be worth twice as much at the end of the credit period as it was at the beginning, then you might already have gotten half of your BTC back before the loan ends.

If you’d now sell this half, you could pay off the loan, and you’d still get the other half of your BTC refunded from the loan company.

Of course, we are talking here about the best case scenario, which, however, according to many experts, is not unlikely, especially over 2 to 3 years.

Another option is to refinance the Bitcoin home loan at the end of the term. This means to take out a new loan that pays off the old one.

In any case, of course, you need your own plan on how to pay back the loan at the end, in regard to any scenario regarding the BTC price development. In an ongoing bull market it might get quite easy to pay off a BTC secured loan, of course depending on how much Bitcoin’s value would have increased.

What if you can’t pay your Loan back when the Term ends?

The worst case would be that you can’t pay the loan back in the end and the loan company needs to sell your BTC to get their money back. The forcable sale of your collateral is also called liquidation, which is comparable to liquidation in trading.

The good thing is that at least this wouldn’t have an effect on your credit score. On the other hand, such a liquidation likely becomes a taxable event for the customer, that’s at least what the loan companies assume: According to the contract, the sale of the deposit would apparently be regarded as a sale by the borrower, even if the loan company carries out the sale. This would require the borrower to pay a capital gains tax on the liquidation even though he doesn’t receive the proceeds.

This may sound uncomfortable, but we shouldn’t forget that in this case the borrower doesn’t go away empty-handed because he can “keep” the loan. So the bottom line is that you wouldn’t get your BTC back and you’d have to pay taxes on the liquidation. But at least you had the borrowed money that you don’t have to pay back anymore.

However, the probability that this scenario could occur is kept very low by the loan-to-value ratio that leaves a lot of space for price volatility. The Bitcoin price would have to crash quite deep in order to put the loan at risk.

Why Bitcoin Loans could be insanely profitable in Bull Markets

At this point we would like to return to what it would be like if we were in a longer bull market: In an ongoing market up trend, such loans could be very advantageous, since current loans can generally be paid off with follow-up loans (refinancing).

Assuming you have a loan during a bull market, you could have part of your collateral back during the term. In the end you pay off the loan with a new loan, for which you may have to deposit again even less BTC due to rising BTC prices. Rinse and repeat.. You get the idea. Basically in this scenario borrowers could manage to more or less actually cash out their BTC without having to pay taxes on that.

Of course there is always the risk that price trend shifts, so borrowers should be prepared for any scenario. We just want to discuss all eventualities related to Bitcoin backed Home Loans, to think everything through.

Loan-To-Value Ratio

This ratio describes how much money you will get in relation to the current Bitcoin price. 50% is industry standard and a relatively save ratio for both sides lender and borrower. Due to BTC’s high volatility you get less money than Bitcoin is currently worth, so price drops to a certain degree won’t effect the loan. Only if price drops too low you’d get a margin call. In this case you would have to decide whether you want to give more Bitcoin as collateral or whether you want to repay the loan immediately, at least to the extent that the Loan-To-Value Ratio is back in balance.


blockfi.comBlockFi is a New York-based regulated financial services provider. The company specializes in loans secured with crypto assets. Loans are granted internationally.

Loan Term: 12 months
Loan Amount: $10,000 to $100,000,000
Annual Interest: 4.5 – 11.25%
Loan-To-Value: 50%.
Credit check: No. (Maybe a soft pull.)
If BTC price increases: If the prices rise, you can refinance either through additional capital injection (increase in loan amount due to price increase) or by releasing excess collateral from the loan. Please note that for the latter we can only release collateral from your loan if the Loan-To-Value ratio falls below 25%, and we can only release collateral to bring the loan back to 25% Loan-To-Value.

Unchained Capital

unchained-capital.comUnchained Capital is a regulated financial service company from the US (Austin, Texas) that grants private loans exclusively in many parts of the USA. Corporate loans can also be granted internationally on request, but the focus is on the USA. They have a license to even serve customers from California.

Loan Term: up to 60 months (5 years)
Loan Amount: $10,000 to unlimited
International commercial Investors: $100,000 to unlimited
Annual Interest: 7.25-13% (depending on loan amount, term and state)
Loan-To-Value: 50%.
Credit check: No. (Maybe a soft pull.)
If BTC price increases: If the BTC price rises to such an extent that the ratio of loan to Bitcoin value has fallen to 40%, a partial return of the deposited Bitcoin is possible. The condition is that at least 30 days have passed since the beginning of the credit.


nebeus.comNebeus is a platform of the London based company Money-4 Limited. The platform offers several services related to crypto currencies. These include an online wallet, a savings account where you can earn interest and Bitcoin Loans. Nebeus coin is the company’s token that can be traded on certain altcoin brokers.

Loan Term: 36 months (3 years)
Loan Amount: 250 to 250,000 euros (higher on request)
Annual Interest: 6.12%* – 10.55%
Loan-To-Value: 72%.
Credit check: No.
If BTC price increases: Our new conditions 72% loan at value. If the interest rate rises above 10%, we will release part of the deposit proportionately.

*10.55% is standard. Lower rates are subject to certain conditions.


nexo.ioNexo is a licensed and regulated financial service provider with its own digital token that can be traded on crypto exchanges. They offer different crypto related services such as crypto backed loans, interest accounts and even an own payment card.

Loan Term: up to 12 months (1 year)
Loan Amount: $500 to $2,000,000.
Annual Interest: 8%
Loan-To-Value: 50%.
Credit check: No.
If BTC price increases: Nexo states that in the event of a price increase, you have the option of selling part of your deposited Bitcoin via its platform, with which you can repay the loan partially or completely. In this case, you also need to know whether the sale of the attached BTC is a controllable event. In the USA, for example, this is the case, and certainly in many other countries, the Bitcoin proceeds are turbulent.


coinloan.ioCoinLoan is a P2P lending platform for loans that are backed by crypto assets. The service is for both lenders and borrowers. The company behind the service, ExFinance OÜ, is based in Estonia. It holds licenses from several financial regulators.

Loan Term: up to 36 months (3 years)
Loan Amount: $100 to unlimited
Annual Interest: 5-12%
Loan-To-Value: 60%.
Credit check: No.
If BTC price increases: You can withdraw part of your collateral if the BTC value rises. The conditions are as follows: Loan-To-Value ratio must be less than 70%.


Disclaimer: This article is not financial advice. This article is for information purposes only and does not claim to be accurate. Please consult your personal financial advisor and tax advisor and do your own research. Evaluate your individual financial situation in relation to the information you get before putting your capital at risk.

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