How Crypto Helps Low-Income Families Secure Bigger Mortgages

A recent report from the U.S. Treasury reveals that a growing number of lower-income households are using cryptocurrency gains to secure mortgages, particularly in areas with high crypto exposure.

Researchers found that these households are able to make larger down payments, facilitating access to bigger loans. In some regions, the percentage of low-income households with mortgages surged by over 250%, while the average mortgage balance jumped 150%, rising from approximately $172,000 in 2020 to $443,000 in 2024.

The study highlighted that areas with the highest exposure to crypto assets saw significant increases in both mortgage and auto loan originations, as well as loan balances. These findings were based on tax data, identifying “high-crypto” neighborhoods as those with more than 6% of households reporting crypto-related tax events.

While delinquencies remain low, the report pointed out that low-income households in these areas are taking on debt loads that exceed recommended levels, raising concerns about potential financial instability.

Though there is no immediate crisis, the researchers warned that high leverage in these households could become a risk if economic conditions deteriorate or if the crypto market faces a downturn. They emphasized the importance of monitoring the growing debt levels, especially as higher-risk borrowers could affect broader financial systems if the situation worsens.