- A fintech company named Miro is introducing what is being billed as the world’s first crypto mortgage.
- A 30-year low interest rate US crypto mortgage allows qualified borrowers to hold Bitcoin and buy real estate.
- The loan was granted during the Early Access phase and the product is expected to be available to most applicants earlier this year.
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Financial technology companies are rolling out what is called the world’s first cryptocurrency mortgage loan for borrowers Bitcoin-Backed Loans to Buy Real Estate — A combination of relatively new assets and one of the most established means of building wealth in the United States.
According to the company’s Miro, a 30-year low-interest US crypto mortgage promises potential borrowers to buy real estate in Bitcoin and buys 100 without the need for a dollar down payment. You can qualify to lend%. The loan is granted during the Early Access phase and the product will be available to most applicants in early 2022.
“I think this product is really a game changer for many people. It realizes many aspects of what this consumer wants to keep Bitcoin and make real estate diversified and available for purchase. “It’s an asset that creates great wealth,” Miro’s CEO Josip Lupena told insiders in an interview.
The The crypto loan industry is already in shapeWhen the cryptocurrency market reached a remarkable year in 2021, it temporarily surged above the $ 3 trillion valuation for the first time. Cryptocurrency mortgage loans are mortgage loans that use Bitcoin and other digital assets as collateral.
Mr. Miro said that crypto mortgages already have a “large” waiting list, to fund crypto investors’ willingness to extend wealth-building activities to homes and to fund such purchases. He emphasizes that he is reluctant to let go of Bitcoin.
It is “very difficult [crypto holders] Existing frameworks with banks and other lenders do not consider their crypto wealth, so they qualify for mortgages. That means they have to find another way to buy real estate, “Lupena said.
“At the same time, the biggest concern for them is the opportunity cost for the existence of Bitcoin and digital assets. Over time, it has increased, appreciated and appreciated,” he said. “People who have cryptocurrencies are different from those who live in the traditional dollarized world. They really don’t want to sell cryptocurrencies.”
If the purchase price of the property is $ 500,000, the potential Milo borrower must pledge at least $ 500,000 through a third-party custodian. Rupena said it would undertake the borrower, examine various data points and perform due diligence on properties, titles, and all other aspects of pending transactions.
“The Bitcoin will allow us to offer the loan to consumers, while at the same time they will continue to own Bitcoin throughout the transaction process,” Rupena said. Milo aims to expand its product so that borrowers can pledge other cryptocurrencies.
Like other crypto loans, Miro’s crypto mortgages have a margin call component.
“If the cryptocurrency goes down by a certain amount … they could be the target, but they have the opportunity to pledge more to mitigate those factors,” Rupena said.He said the transaction was structured to minimize the impact of prices.
A licensed lender, Milo is familiar with dealing with professional clients, starting in 2018 and focusing on clients residing outside the United States. Mr. Lupena said the idea of a US crypto mortgage began because international customers with digital assets wanted such products.
He said credit checks are part of the lending process for US domestic borrowers. “For overseas clients [as] They don’t have credit, we have found another way to underwrite without credit … and that’s another data point for us. ”
Miro’s other foreign mortgage products, along with applicants from at least 63 countries, have begun lending millions of dollars, he added.
Cryptocurrency mortgage markets could be worth tens of billions of dollars, Rupena estimated.
“We know that the balance of existing loans backed by cryptocurrencies is billions of dollars depending on the number of buyers there, so at least it’s a billion dollar opportunity. I believe. It’s even bigger given the size of real estate as an asset class. “