Fintech startup Milo offers 30-year “crypto mortgages”

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Miami-based fintech startup Milo is introducing what it claims is the world’s first “crypto mortgage”. Digital banking will allow crypto investors to leverage their digital assets to purchase US real estate

At this time, only clients wishing to use Bitcoin (BTC) as collateral are eligible for Milo’s 30-year mortgage. US and international customers will be able to use the service to purchase US real estate. Milo’s website states:

“Instead of selling your crypto for a down payment to qualify for a mortgage, a crypto mortgage lets you leverage your crypto to invest in real estate.”

Milo says it has already granted loans as part of its early access phase and expects the service to be available to most applicants on its waiting list in the coming months.

It is still unclear how much BTC will be needed to secure a loan, or the level of overcollateralization needed to balance out the volatility of the digital asset. Cointelegraph asked Milo for more details and will update this story when we get back to you.

BREAKING: You can now buy a home using #Bitcoin as collateral and ZERO escrow with mortgage lender Milo.

— Bitcoin Archive (@BTC_Archive) January 18, 2022

Josip Rupena, CEO and founder of Milo, said the idea came in response to seeing the “countless stories” of people cashing in their BTC to buy a property, only to see it increase in value later.

“Existing ways for crypto consumers to access mortgages have left them with unintended tax obligations to sell for a down payment or worse the opportunity cost of seeing their crypto increase in value.”

Milo says the company’s other mortgage solution for foreign nationals has already generated millions of dollars in loans and seen applicants from more than 63 countries. It allows non-US based clients to close their home loans remotely, without having to travel to the US or an embassy.

Introducing Rupena at the North American Bitcoin Conference on January 17, pro-crypto Miami Mayor Francis Suarez said the Bitcoin Mortgage is a “groundbreaking achievement” to advance American dominance in the Bitcoin ecosystem. .

“To become the capital of capital, Miami needs companies like Milo that are ready to innovate and imagine,” he added.

Milo is not the first company to aim for a crypto mortgage.

In August 2021, United Wholesale Mortgage began testing the waters for crypto mortgage repayments with Ether and BTC as part of a pilot program. However, by October he had scrapped his plans due to regulatory uncertainty.

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Milo raised $6 million in seed funding from investors including investors QED, Metaprop and 10x Capital in January 2021.

Rupena previously worked at multinational investment banking firms Morgan Stanley and Goldman Sachs.

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