Summary

Lava’s Bitcoin Line of Credit (BLOC) empowers Bitcoin holders to unlock dollar liquidity for major purchases like US real estate—without selling their BTC or triggering taxable events. With BLOC, you can borrow up to 50% of your Bitcoin’s value at fixed rates starting around 5% APR, pay a simple 2% annual capital charge based only on your highest balance, and enjoy open-ended terms with no monthly payments. The process is fast, globally available, and designed for maximum flexibility: you can use your Lava Card to spend directly from your line and even earn rewards. Lava’s transparent, user-first approach means you keep your Bitcoin upside, stay agile in a competitive real estate market, and don’t get rugged by hidden fees or forced timelines. This article is authored by the Lava team, reflecting their commitment to Bitcoin-native financial freedom and practical, actionable guidance for the Bitcoin community.

What is a Bitcoin-backed loan for real estate? * It’s a loan that lets you use your Bitcoin as collateral to access dollars for property purchases, so you don’t have to sell your BTC (source: Lava Blog).
How does Lava’s BLOC differ from a traditional mortgage? * BLOC is a flexible credit line against your BTC with no monthly payments or fixed term—you control when and how much to repay.
What happens if Bitcoin’s price drops while I have a BLOC? * Your loan-to-value (LTV) ratio rises; you may need to add more BTC as collateral or repay part of your balance. Severe price drops can trigger liquidation (FAQ: Lava FAQ).
Are Bitcoin-backed loans taxable? * Borrowing against BTC is generally not taxable, but using BTC to pay interest/principal or if your BTC is liquidated to repay the loan, those are taxable events. Always consult a tax professional.
Can I close on a home using a Lava BLOC? * Yes, BLOC provides documented dollar liquidity for down payments or cash offers, and can be coordinated with your lender or title company.

Lava’s BLOC is ideal for Bitcoiners who want to preserve their long-term thesis, move fast in real estate markets, and avoid capital gains taxes from selling BTC. “A bitcoin-backed line of credit allows you to unlock dollars against your BTC so you can fund a home purchase while retaining your bitcoin exposure” (source). For more details, see the full article or reach out to the Lava team.

Ready to unlock your Bitcoin’s purchasing power? Sign up for Lava BLOC in minutes and join the Bitcoin-native financial revolution.

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Sep 11, 2025

A Bitcoiner’s Guide to Homebuying: What to Know in 2025

Bo Kane

After bitcoin, a primary residence is often the next most precious asset for bitcoiners. At ~6.5%, the average mortgage in the United States is still cheaper than bitcoin-backed lending (for now). Despite this, there are still many reasons why bitcoiners should consider using a bitcoin-backed loan with or in some cases instead of a traditional mortgage. We outline these below:

Make a cash offer with a bitcoin-backed loan

Cash offers can be a powerful negotiating tool for home buyers. A recent study from the Journal of Finance found that cash offers save buyers 10% on average versus those who finance their house with a mortgage. If you take out a bitcoin-backed loan with Lava, you can have your cash wired to you the same day. That way, you can make a cash offer at a lower price, save ~10% on your home purchase, and refinance some or all of your bitcoin-backed loan with a cheaper mortgage after you’ve closed on the property.

Cash offers also typically save time and fees for all parties - with a traditional mortgage you may need to wait as long as 60 days for an approval, and mortgage lenders require additional fees and expenses such as appraisals that add to the all in cost of financing.

Optimize your effective cost of funds

As bitcoiners saving in bitcoin, our opportunity cost of capital is extremely high. Since traditional mortgages typically only advance up to 80% against the value of your new home, your downpayment may be 20% or more. This means every dollar of savings trapped in home equity is a dollar not saved in bitcoin compounding at 40-50+% rates. This means your effective cost of borrowing is more like 15% all in, even if your mortgage rate is only 6.5%. By financing all or part of your downpayment at low cost against your bitcoin, you reduce this cost dramatically.

Improve your underwriting numbers

Banks review a host of different financial metrics when underwriting you for a home. One of the most important and most common reasons prospective borrowers are rejected for a mortgage is the debt-to-income (”DTI”) ratio. The larger the mortgage you take out, the worse your DTI ratio will be, potentially jeopardizing your ability to secure financing. By using a bitcoin-backed loan, you will improve these numbers and potentially even qualify for a better mortgage rate.

Additionally, your new mortgage payment will be reported to credit bureaus, making any future loans even more expensive and less likely to pass underwriting. Lava does not and will never report your borrowing to credit bureaus.

To learn more about using Lava to buy your dream home today, reach out of one of our experts here: concierge@lava.xyz