Crypto investors who want to buy a home face a frustrating reality: most traditional lenders do not know how to work with digital asset wealth. No pay stubs, no W-2, no approval, regardless of how much sits in the wallet.
But the mortgage industry is adapting. Several non-QM (non-qualified mortgage) loan products now exist specifically for borrowers with non-traditional income sources. For crypto holders, these alternatives eliminate the need to liquidate, avoid unnecessary tax events, and offer a realistic path to homeownership.
Bank Statement Loans
Bank statement loans are one of the most established non-QM products. Instead of tax returns and W-2s, the lender reviews 12 to 24 months of personal or business bank statements to calculate qualifying income.
How it helps crypto investors: If a holder regularly converts portions of their crypto to fiat and deposits into a bank account, those deposits create a trackable income pattern. The lender averages the monthly deposits to determine borrowing power.
The catch: This only works if there is a consistent history of deposits. Investors who hold long-term without converting to fiat will not have enough bank activity to qualify through this route alone.
Typical requirements: 10-20% down payment, 660+ credit score, and enough deposit history to demonstrate stable monthly income.
Asset Depletion Mortgages
This is where things get interesting for crypto holders who do not move funds regularly.
Asset depletion does not look at income at all. Instead, the lender evaluates the borrower’s total liquid and semi-liquid assets, applies a conservative discount to account for market risk, and divides the result across the loan term to calculate a synthetic monthly income.
How it works in practice:
- Step 1: The lender identifies eligible assets, Bitcoin, Ethereum, stocks, bonds, savings, retirement accounts.
- Step 2: A discount is applied. For crypto, lenders typically use around 50% to account for volatility. A $4M Bitcoin portfolio would count as roughly $2M.
- Step 3: That discounted value is divided by the loan term (360 months for a 30-year mortgage) to produce a monthly qualifying income figure.
Why crypto holders prefer this: No selling, no pledging, no margin calls. The borrower keeps full control of their assets throughout the life of the loan and can trade freely after closing.
Mortgage brokers like LendFriend have built their practice around this model, helping Bitcoin and Ethereum investors qualify for 30-year fixed-rate mortgages without liquidation or collateral requirements.
Typical requirements: 20% down payment, 700+ credit score (780+ for best rates), and assets held in verifiable accounts.
DSCR Loans (For Investment Properties)
Debt Service Coverage Ratio loans are designed for borrowers purchasing rental or investment properties. The qualification is based on the property’s projected rental income rather than the borrower’s personal income.
How it helps crypto investors: If the goal is building a real estate portfolio rather than buying a primary residence, DSCR loans remove personal income from the equation entirely. The property needs to generate enough rent to cover the mortgage payment at a ratio of 1.0 or higher (ideally 1.25+).
The catch: DSCR loans are only available for investment properties, not primary residences. And interest rates tend to run slightly higher than conventional loans.
Typical requirements: 20-25% down payment, 680+ credit score, and a property with strong rental income potential.
Crypto-Collateralized Loans: The Riskier Route
Some platforms offer loans where the borrower pledges crypto as collateral. These are not traditional mortgages, they are typically short-term (12 months), carry interest rates around 13-15%, and come with significant origination fees.
The major risk: If the crypto market drops, the borrower faces margin calls. If they cannot add more collateral, the lender liquidates the pledged assets — often at the worst possible time.
For borrowers who need fast liquidity, these can serve a purpose. But as a long-term home financing strategy, the cost and risk profile make them hard to justify compared to asset depletion or bank statement alternatives.
How to Choose the Right Option
The best path depends on the borrower’s specific situation:
- Regular crypto-to-fiat conversions? Bank statement loan may be the simplest route.
- Large portfolio, no traditional income? Asset depletion is likely the strongest fit.
- Buying rental property? DSCR loan keeps personal finances out of the equation.
- Need short-term bridge capital? Crypto-collateralized loan works, but plan an exit strategy.
Regardless of the path, working with a broker experienced in non-QM lending is critical. These are not cookie-cutter products. Each lender has different overlays, risk tolerances, and asset verification processes.
Final Thought
The mortgage industry spent years ignoring crypto wealth. That era is ending. Non-QM lending has opened multiple doors for digital asset holders who want property ownership without sacrificing their positions.
The key is matching the right loan product to the right financial profile and working with professionals who actually understand how crypto fits into the underwriting equation.
