Miami-based digital bank Milo informed on the launch of a “crypto-mortgage” secured by bitcoin for the purchase of real estate in the United States.
“Instead of selling cryptocurrencies to pay the down payment on a fiat mortgage, the product allows you to use bitcoin to invest in real estate. Our strategy is in line with yours – keep hodling.”, says on company website.
The service is available to residents of the US and other countries.
The interest rate and the minimum ratio between the value of collateral and the size of the loan are not specified. Depositing and withdrawing digital gold used as collateral affects financial conditions.
When assessing the borrower’s creditworthiness in Milo, instead of points FICO take into account the amount of digital gold held.
No initial deposit required. The loan is issued for a period of 30 years. Assumes no tax liabilities.
Milo has opened an entry to the waiting list. The service will become available “in the coming months.” As part of early access, the digital bank has already issued several mortgage loans.
The company’s other non-cryptocurrency mortgage division has accepted applications for “millions of dollars” from residents in 63 different countries.
The startup positions itself as a direct lender that has been licensed and audited, whose activities are insured.
“Existing Mortgage Options Have Left Crypto Investors With Unintended Tax Liabilities [после продажи биткоина] or, even worse, with the opportunity cost in the form of an increase in their value, – said CEO and founder of Milo Josip Rupena.
Recall that in December 2021, the Ledn crypto lending platform announced the launch of mortgage lending secured by bitcoin for customers from the United States and Canada. The product limit for January-March will exceed $100 million.
Earlier, United Wholesale Mortgage, one of the largest US mortgage lenders, stopped accepting payments in cryptocurrency six weeks after the launch of the corresponding program.