Milo, the fintech startup based in Miami, has introduced the world’s first crypto mortgage, where the digital bank will allow investors to leverage their digital assets. This would then be utilized to purchase real estate in the United States. At this moment, only customers who have wanted to use Bitcoin as collateral qualify for the 30-year mortgage loan of this company.
Both international, as well as American, customers would be able to utilize the service in order to purchase real estate in the United States. The website of this fintech startup has stated that instead of selling their crypto for a down payment to qualify for a mortgage, wherein a crypto mortgage would let one leverage the crypto to be invested in real estate.
Milo Will Be Offering Crypto Mortgages
Milo has already gone ahead and granted quite a few loans as a part of its early-access stage and expects the service will be available to most of the applicants who are currently on a waiting list in the coming months. It still remains unclear how much Bitcoin will be needed to secure a loan or the level of over-collateralization that is needed to balance out the volatility of the digital asset. Cointelegraph has already asked the startup for details and is waiting for an update.
The founder and CEO of Milo, Josip Rupena, has stated that the idea did come as a response to seeing the countless stories of people who had cashed out their Bitcoin to purchase property, only to see it increase in value later. He mentioned that the existing ways for consumers of crypto to access home credit have definitely left them with unintended tax liabilities of selling for a down payment or worse the opportunity cost of seeing their crypto increase in value.
According to Milo, its other mortgage solution for foreign nationals has come up through millions of dollars in loans already and has seen applicants from over 63 countries. It allows non-US-based customers to close their housing loans remotely.
