Should You Use Crypto To Purchase a Home? 4 Methods and Their Risks

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Chris AdamFri, Jul 18, 2025, 10:52 PM 2 min readIf you’re a fan of crypto, perhaps you’ve been thinking about the various ways to incorporate it into your financial life. Perhaps you’ve seen headlines claiming crypto mortgages are on the rise as the new way to buy some homes.Learn More: 13 Cheap Cryptocurrencies With the Highest Potential Upside for YouRead Next: Clever Ways To Save Money That Actually Work in 2025However, before you set out to grab your next house with crypto, there are some precautions to keep in mind. Here’s what financial experts told GOBankingRates about certain methods and their risks when using crypto to purchase a home.Andrew Lokenauth, a money expert from Be Fluent in Finance, said the most straightforward method he’s used with clients is converting crypto to cash first.“I just helped a client last March sell $600,000 in bitcoin for their dream house in the suburbs,” he said. “The thing is, most sellers still want good old-fashioned dollars, and this approach causes the least headaches with lenders.”Trending Now: I Asked ChatGPT To Explain Crypto Like I’m 12 — Here’s What It Said“Let me tell you about a client who tried using a crypto-backed loan,” Lokenauth said. “The market tanked right before closing, and they got hit with a massive margin call — lost about $75,000 in collateral. Not fun explaining that one to their partner.”You may also want to take a look at escrow and mortgage opportunities that use crypto in the purchase of a home, but may offer some risk protection.“It’s possible to leverage your crypto for real estate purchases by using smart-contract escrows or stablecoin-pegged mortgages, which automate payments and reduce counterparty risk,” according to Chad Willardson, founder and president of Pacific Capital and City Treasurer of Corona, California. “Tokenized property platforms allow fractional ownership, softening volatility by spreading exposure across multiple investors.”However, per Willardson, crypto’s price swings remain a major risk — buyers should hedge with stablecoins or convert to fiat at closing.According to Willardson, regulatory ambiguity can slow or derail transactions, so work with title companies experienced in digital assets.“As an alternative, consider blended financing: part traditional mortgage and part crypto loan to balance innovation with stability,” Willardson said.More From GOBankingRates3 Luxury SUVs That Will Have Massive Price Drops in Summer 20254 Things You Should Do if You Want To Retire Early 10 Cars That Outlast the Average Vehicle7 Things You'll Be Happy You Downsized in RetirementThis article originally appeared on GOBankingRates.com: Should You Use Crypto To Purchase a Home? 4 Methods and Their RisksTerms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,296.79 -0.57 (-0.01%)Dow 3044,342.19 -142.30 (-0.32%)Nasdaq20,895.66 +10.01 (+0.05%)Russell 20002,240.01 -13.68 (-0.61%)VIX16.41 -0.11 (-0.67%)Gold3,358.30 +13.00 (+0.39%)PortfolioSign in to access your portfolioSign inTop gainersSTEM Stem, Inc. 13.50 +4.23 (+45.63%)TLN Talen Energy Corporation 328.63 +64.63 (+24.48%)CRSP CRISPR Therapeutics AG 65.13 +10.04 (+18.22%)IVZ Invesco Ltd. 19.92 +2.64 (+15.28%)SOC Sable Offshore Corp. 31.69 +3.35 (+11.82%)Top losersMLGO MicroAlgo Inc. 14.66 -3.12 (-17.57%)ARWR Arrowhead Pharmaceuticals, Inc. 16.76 -2.09 (-11.09%)MOH Molina Healthcare, Inc. 182.98 -21.27 (-10.41%)ELV Elevance Health, Inc. 277.09 -25.36 (-8.38%)STNE StoneCo Ltd. 13.67 -1.24 (-8.32%)Most activeLCID Lucid Group, Inc. 3.0400 -0.0800 (-2.56%)QS QuantumScape Corporation 14.64 +1.04 (+7.65%)NVDA NVIDIA Corporation 172.41 -0.59 (-0.34%)WBD Warner Bros. Discovery, Inc. 12.75 -0.09 (-0.70%)NU Nu Holdings Ltd. 13.02 -0.97 (-6.93%)Earnings eventsTrending tickersETH-USD Ethereum USD 3,642.28 +59.13 (+1.65%)S SentinelOne, Inc. 18.01 +0.29 (+1.64%)LTC-USD Litecoin USD 113.82 +11.07 (+10.77%)ZETA Zeta Global Holdings Corp. 15.60 -0.30 (-1.89%)BTC-USD Bitcoin USD 117,890.40 -318.40 (-0.27%)Top economic events