US mortgage firm backs home purchases using crypto
A Miami mortgage firm is allowing buyers to purchase homes using crypto
The mortgage firm claims a crypto mortgage could see borrowers win on two fronts as the value of the property rises together with that of the cryptocurrency
The initiative has proven popular with buyers with the firm approving $340 million of mortgages in the last month alone
Miami-based mortgage firm Milo is allowing its customers to use cryptocurrency that they already hold as collateral for home loans without the need for a down payment.
The firm will allow borrowers up to $5 million a time on individual home loans. Instead of a downpayment, the borrowers pledge the entire value of the property in Bitcoin and Ethereum before transferring them to a custodian for safekeeping.
The buyer then makes regular monthly payments at similar rates offered for regular mortgages, with the stored crypto available to the lender should the borrower default.
Homeowners could stand to benefit on both fronts should the value of the property rise, alongside the value of their pledged cryptocurrency.
This new offering has proved popular, with the firm approving $340 million of mortgages in the last month alone.
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