The World’s First Crypto Mortgage is ComingJanuary 18, 2022 5:33 pm
A financial tech company named Milo recently announced that it is introducing the world’s first crypto mortgage which will involve borrowers to acquire bitcoin-backed loans which will allow them to buy real estate.
This recent move to provide this type of service is a unique intersection digital assets and with of the oldest industries that deals with physical assets.
The company states that its low-interest rate US mortgage will allow borrowers will be able to use bitcoin as assets to use finance the purchase of property with no down payment in USD required.
From a timeline perspective, these loan offerings are planned to be available sometime in early 2022.
Milo states that their crypto mortgage offering has already gathered a large amount of interest and that they have a large waitlist of borrowers looking to use this new offering.
A fintech behind the first 'crypto mortgage' sees a multi-billion dollar market in allowing borrowers to pledge their bitcoin to gain access to the real estate market https://t.co/7bXDzMEPa6 pic.twitter.com/Hbr7ecH4um
— SuperTechNews (@SuperTechNews1) January 18, 2022
Currently, it can be very difficult for people who hold a significant amount of digital assets like crypto to qualify for mortgages because traditional lending institutions do not consider cryptocurrencies as true wealth.
As a result, crypto holders often have to seek alternative ways to obtain mortgages if they are looking to purchase real estate.
Business Insider reports:
If the purchase price of a property is $500,000, a potential Milo borrower would need to pledge, through a third-party custodian, at least $500,000.
Rupena said it will underwrite the borrower, look at various data points and run due diligence on the property, the title, and all other aspects of a pending transaction.
“That bitcoin will allow us to get comfortable with the consumer to be able to give them that loan.
At the same time, they will continue to own the bitcoin through the course of the transaction,” said Rupena.
Milo is aiming to expand the product to allow borrowers to pledge other cryptocurrencies.
Mortgage borrowers can pay monthly using crypto or fiat currency.
Milo is a lender that is not only focused specifically with borrowers within the US.
As they have served other markets internationally before, they are familiar with processes that involve providing lending services to people who do not have credit.
As a result, the company also has other mortgage or loan products that they have offered to people outside the US and have seen crypto-backed loans in other parts of the world.
Currently, the crypto loan industry is reported to already have a 3 trillion dollar valuation for the year of 2021 where the loans are defined as using digital assets like bitcoin as collateral for the loan.
Since they have observed the opportunity in the world where loans backed by crypto assets were high in demand and is a growing industry, Milo hopes to take advantage of that type of demand by taking it a step further into mortgages for real estate due to the tremendous size of the market.
It is estimated that the crypto-mortgage could be worth at least tens-of-billions given the overall success of crypto loans already.
The introduction of crypto assets into traditional financial services like loan and mortgage services continues to indicate the increasing role that crypto assets will play in the future.
As a result, the use case possibilities continue to expand as they continue to be accepted by more and more traditional institutions.
— Refresh Miami (@refreshmiami) January 18, 2022
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