If homebuyers utilize crypto holdings as collateral for home loans, Milo, a financial technology firm that reimagines mortgage credit, removes the barrier for down payments. Miami-based Milo is willing to offer borrowers up to $5 million in home loans if they can show that they have a significant amount of Ethereum and Bitcoin, which will be transferred to a custodian for protection.
Homebuyers can now pay monthly in crypto or cash, at the same rate as traditional mortgages. Even yet, if the borrowers default, the lender must have access to the stored crypto.
As a result, homebuyers will benefit from these new alternatives on two fronts they will purchase residences that are likely to appreciate in value, and they will also benefit from a rise in the value of their cryptocurrencies.
Vincent Burniske was able to purchase two tiny apartment buildings in Coral Gables, Miami, with the help of a seven-figure crypto loan.
According to the sports media consultant:
“I was convinced I was going down the conventional loan path. It’s comfortable. It’s what we know. But at any given moment, there are better financing options, and you really need to pay attention.”
Milo sets safeguards to protect itself in the event of a crypto market crash. According to the report:
“If the value of the crypto collateral drops to below 65 percent of the loan amount, the borrower will be asked to provide more crypto or cash.”
The report further states that:
“If the value of the currency drops below 30 percent, Milo will immediately liquidate the Bitcoin or Ethereum and store that amount in traditional US dollars.”
Milo, which processed mortgages worth $340 million in March alone, is looking to refine this sector by using new technology such as cryptocurrency.
Milo’s founder, Joseph Rupena, acknowledged:
“Milo will be looking to provide other long-term solutions to those with crypto wealth — not just mortgages.”
As a result, the cryptocurrency industry is making inroads into the mortgage industry.
