Milo, the fintech startup is offering a 30-year ‘crypto-mortgages’

It’s 2022, and crypto users will soon be able to leverage their cryptocurrencies and crypto investment to purchase real estate in the country.

A new fintech startup based in Miami, Milo, has revealed that consumers will be offered crypto-mortgages for real estate that can be fully paid in 30 years. This startup is the first of its kind in the world. Crypto mortgages could be the future, as digital banks will provide investors with the chance to purchase homes and other retail real estate using cryptocurrencies.

Currently, cryptocurrencies have several utilities, with some assets having more worth than others. The crypto industry’s being a volatile one has in the past dissuaded many investors from cashing out to purchase properties only to see the assets increase in value moments or days later. Milo’s plan to enable customers to use Bitcoin (BTC) as collateral to qualify for 30-year mortgage loans is very welcome in the United States. Both American and international customers will have equal chances of purchasing properties and spaces in the country, provided Bitcoin is available as collateral for the loans.

Accessing Home Credits with Bitcoin

Milo’s website introduces interested crypto users to the concept of crypto mortgages. It explains that they are not required to sell their cryptos or digital assets to raise a down payment or have a good credit score to qualify for a real estate mortgage. With a crypto mortgage, crypto investors can instantly leverage their assets to own real estate.

Some loans have been granted as part of the start-up’s early access stage. Applicants on the company’s waiting list will be attended to in the next few months when the service is officially launched. The team is yet to state the amount of BTC that will be needed to qualify for the loans. Many investors are still trying to understand how the firm plans to balance out Bitcoin’s volatility and the differing over-collateralization levels. Several news outlets, like Cointelegraph, have reached out to Milo representatives for more insight.

This is a win-win situation for investors because they will HODL their Bitcoin and crypto assets while researching real estate. They can potentially profit from the price appreciation of real estate and digital assets in this manner.

The company assures investors that clients who qualify will be issued low-interest rate loans that require no down payments, unlike the traditional real estate mortgage system.

If Milo successfully combines the liquidity of cryptos with the security of real estate, then the gap between the crypto industry and the real estate market will be closed. 

Investing in Real Estate with Crypto Wealth

Crypto mortgages are faster than traditional mortgages, and investors can fully finance their properties. 

In a press release, Milo’s Founder and CEO, Josip Rupena, stated that the company is offering one of the best ways for consumers to invest the bulk of Crypto’s $2 trillion wealth in real estate. He revealed that the inspiration for the service came after hearing the stories of crypto investors who had to cash in on their digital assets to buy homes and land, only for the value of the assets to rise. 

For instance, people who cashed out their BTC holdings early in 2021 to purchase real estate would have felt really bad when the coin doubled in value toward the end of Q1 2021. With Milo’s crypto-mortgage, consumers will have more ways to access home credit with fewer tax liabilities.

Francis Suarez, Mayor of Miami and an ardent supporter of cryptocurrencies, described this feat as a “groundbreaking success.” He said this while introducing Mr. Josip Rupena at the North American Bitcoin Conference a week ago. He added that the Bitcoin mortgage would help advance the country’s dominance in the crypto space. Mayor Suarez enthusiastically Stated that Miami needs more innovative companies like Milo to grow Miami. 

The future of Bitcoin mortgages 

The first time the concept of crypto-mortgage came to be was in August 2021. Then, United Wholesale Mortgage tried an experimental program that involved repaying mortgages with cryptos like Ethereum (ETH) and Bitcoin (BTC). However, the program was canceled in October due to uncertainty in policies.

Milo’s seed funding raised over $5.9 million from investors like QED Investors, Metaprop, and 10X Capital. Rupena is channeling his experience gained while working at multinational investment banking corporations like Goldman Sachs and Morgan Stanley to ensure Milo’s crypto mortgage services turn out well.

Leave a Reply

Your email address will not be published.