A new concept that reaches the digital financial market offers an innovative proposal regarding the acquisition of real estate. It could be considered the perfect fusion of the crypto economy between traditional banking and decentralized finance.
Indeed, this financial option intends that Bitcoin or cryptocurrencies serve as collateral or guarantee when purchasing a home, a fascinating aspect since many people are preparing to make cryptographic investments.
Crypto mortgages are a successful concept.
Mortgages with cryptocurrencies have become a business that has been promoted in 2021 by the Milo Company, which for 2022 is proposing an offer of around 10 million dollars for the purchase of homes, managing to digitize the mortgage loan process and whose plan is to be able to finalize the operations in a period not exceeding three weeks.
Thousands of people yearn for the possibility of acquiring homes and more if it is through a new option such as Bitcoin; in this type of loan, the alternative is to give digital currencies as collateral for the purchase of a home, where investors at grander scale could be the most benefited.
Anyone who stores Bitcoin or other cryptocurrencies could be the perfect candidate for this type of project because there are two poles of cryptocurrency stores, those who make long-term investments and have capital and those who store Bitcoin but do not have the income to qualify for a credit benefit like this.
The role that cryptocurrencies are playing at this precise moment where finances are a bit broken and the economy poses risks to the income of many; digital currencies seek to diversify the investments of many even when the circumstances regarding the value of digital assets are not the right one.
This option is impacting the United States, where the milo company is based, a kind of digital bank, where some real estate projects under construction are accepting the use of digital currencies as an initial part.
The solution for many who want to grow
This proposal is attracting the attention of many investors who wish to increase or diversify their investment portfolio since, with this option; they could reduce the payment of taxes.
The main objective of this project is to offer anyone who stores cryptocurrencies, for now, Bitcoin or Ethereum, the possibility of obtaining a home.
More than 7,800 applications have been obtained, and an equivalent of 342 million dollars has been pre-approved, a fairly considerable sum if we evaluate the economic context of the United States.
The states being promoted to acquire homes are Texas, New York, and California.
The merger of funds is currently being carried out through Milo, where recognized financing companies are contributing their capital to increase the capacity to attract clients for mortgage loans.
Conditions of use of mortgages with cryptocurrencies
A significant factor that should be highlighted concerning this innovative project: is Bitcoin’s valuation at a given time.
When acquiring a cryptographic mortgage, the tokens held at that time are granted to the company as a form of guarantee. They are equivalent to the amount in fiduciary coins of the property.
If Bitcoin enters a downward trend like the current one, the user or borrower must cover the remaining or missing balance due to the decrease in the digital asset price, either in digital currencies or in Fiat currencies.
It is an exciting point since people must be clear that this could be one of the most relevant risks since they must be aware of the cryptographic market and its possible variations.
An income margin is not required, but a significant amount of crypto assets must be owned to carry out any real estate transaction.
Remember there will be a monthly payment, as usually happens in the case of mortgage loans, only that this type of company will serve as a custodian of your digital currencies, backing the loan in them.
Requirements to opt for a crypto mortgage
There are not many requirements to opt for this type of financing; the main characteristic is that you have cryptocurrencies.
Applicants can acquire properties in the United States without being in this country.
The amount available in cryptocurrencies must be equal to the cost of the property or its equivalent to the mortgage to be applied for.
Over time we will see how new opportunities arise where the protagonists are cryptocurrencies, which in the end will end up coexisting in a friendly way with traditional banking, which is why by updating digital finance you will find the appropriate information.