Company points to new options for those who want to buy a home using crypto
Fintech company Milo has launched two new crypto mortgage offerings as the company continues to bridge the digital lending space to the real world.
The cryptocurrency home lender unveiled Tuesday its new refinance option that enables borrowers to access US dollars by pledging their crypto assets and their property to cash out up to 100% of their property’s home equity value. Through the crypto refinance product, borrowers can use the cash proceeds from the property to pay off existing debt, repurchase crypto or invest in other assets.
“Milo’s crypto refinance offering is a game changer for those who previously sold their crypto or took out a short-term crypto loan to buy a home in cash,” the company said in a Press release. “This solution allows them to extend the repayment term to 30 years and gain access to the financing they would have preferred from inception. Milo’s crypto refinance also requires significantly less crypto collateral than similar products on the market. While crypto loans usually require two or 3x the loan amount in collateral, Milo’s product only requires 1x the loan amount or less.”
Milo estimates that consumers can save up to $175,000 over a five-year term on a $1 million loan. The launch of the crypto cash-out refi comes on the heels of the release of Milo’s 30-year crypto mortgage purchase loan in January. The Miami-based fintech also celebrated a recent milestone of reaching $10 million in crypto mortgages.
“Based on the success of our crypto mortgage offering, we are now able to empower those who would have liked 100% financing via a crypto mortgage when purchasing their home,” said Josip Rupena, CEO and founder of Milo. “With our crypto refinance, they can benefit from having access to their home equity when attractive investment opportunities come up. We will continue to pioneer this space and help individuals diversify their crypto wealth with real estate by creating unique offerings that are only possible with crypto.”
Read more: Milo CEO predicts billion-dollar crypto mortgage market
The second newly released product is an undercollateralized crypto mortgage backed by USDC or tokenized US dollar. The offering allows customers to borrow 100% of the property’s value by pledging 40% of the loan amount in USDC.
Rupena said that the company saw a need for an undercollateralized crypto mortgage early on.
“At Milo, we are on a mission to drive financial inclusion, and our crypto mortgage can do that for so many crypto consumers,” he added. “We knew from day one that an undercollateralized crypto mortgage was needed, and we are now one step closer to helping more clients qualify to buy real estate. Many crypto consumers are already earning and spending exclusively in the digital world. Our USDC offering simply helps these consumers build a bridge to the real world.”
