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Board Speculation
Merits 1 from 1 user
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
Paashaas
on 20/04/2022, 11:08:14 UTC
⭐ Merited by JayJuanGee (1)
Bitcoin-Backed Mortgages Are Coming. Here’s What That Means for Buyers.

Quote
Buying a house with Bitcoin as collateral may soon be possible as crypto startups try to crack the $2.6 trillion mortgage market.

A start-up called Milo started offering 30-year mortgages backed by cryptocurrencies in March. The company is working with more than 700 potential borrowers on pre-approvals and has made $5 million to $10 million in loans, CEO Josip Rupena said in an interview with Barron’s.

“This is a live product and we’re breaking away,” he said.

Borrowers can use Bitcoin, ether, or stablecoins as collateral for a loan. Stablecoins are digital currencies designed to maintain a fixed $1 price. Milo will accept the USD Coin, Gemini Dollar, and Terra stablecoins, Rupena said.

That isn’t the only unconventional aspect of a crypto loan. Milo says it will extend credit for up to 100% of the purchase price if someone has enough cryptocurrency. Someone aiming to buy a house for $500,000, for instance, could pledge $500,000 worth of Bitcoin as collateral to Milo, which would then provide the cash to close the deal with the seller.

Rates for its 30-year mortgages range from 3.95% to 5.95% and the loan may be repaid to Milo in crypto or dollars.