The first US home loans backed by cryptocurrencies have been launched.
Mortgages collateralized with cryptocurrencies
They were launched by Milo, a fintech company that is building a proprietary technology stack from scratch. The company has already granted millions of dollars in home loans in the United States, and now it’s also offering its customers the chance to get them by giving Bitcoin as collateral.
According to the official press release, this would be the first offering on the market of crypto mortgages that allow customers to use their digital assets to purchase real estate in the United States.
This will allow customers to pledge their BTC to buy properties by getting 30-year crypto mortgages at low interest rates. Ownership of the pledged Bitcoin will remain with the customer, even though they will need to be locked up, and they will be able to finance 100% of their purchase this way with no down payment in dollars. It will also be possible to obtain the loan faster than the timeframe of a conventional mortgage.
The fintech Milo
Milo has been working on this innovative mortgage since last year, and expects it to be available in early 2022.
The company has already been a licensed, verified and insured direct lender for some time, and its other mortgage solution, dedicated to foreign nationals, has already originated millions of dollars worth of loans, with applicants from over 63 countries.
Milo is headquartered in Miami, which is the most outspoken US city currently welcoming crypto initiatives and activities. Mayor Francis Suarez stated:
“Milo’s decision to expand their financial flexibility with crypto mortgages is a groundbreaking achievement for advancing the United States’ dominance in crypto. To become the Capital of Capital, Miami needs companies like Milo who are willing to innovate and ideate”.
According to Milo founder and CEO Josip Rupena, the world is changing rapidly, particularly in terms of how people earn and invest their cryptocurrencies.
“Clients expect us to come up with innovative solutions to extend credit to millions of great consumers. There are countless stories of people buying property with bitcoin proceeds only to see it increase in value and be worth millions more”.
According to Rupena, this is an exciting time for both the cryptocurrency and mortgage-related industries, and what they want to offer the market is the opportunity to use their wealth in Bitcoin to purchase property.