Crypto-lender Milo Credit has launched the first-ever cryptocurrency refinance offering, according to a press release.
The refinance product uses crypto assets and property as the basis of the loan, allowing currency-holders to pledge both to cash out up to 100% of their home equity value in U.S. dollars.
It is geared towards homeowners who sold their crypto or took out a short-term crypto loan to buy a home in cash, allowing them to extend the repayment term to 30 years and access more financing.
Milo says it also requires less collateral than other similar products, just 1x the loan amount or less compared to 2 or 3x.
“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. With our crypto refinance they can benefit from having access to their home equity when attractive investment opportunities come up,” said Josip Rupena, CEO and Founder of Milo.
“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.”
The company is also publicly releasing its first undercollateralized crypto mortgage backed by USD Coin. Consumers can borrow 100% of the property’s value by only pledging 40% of the loan amount in USDC.
“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,” Rupena said.
Milo launched the first U.S. crypto mortgage at the beginning of 2022, and between April and July had reached $10 million in loans.
Mortgages backed by cryptocurrency are similar to traditional mortgages in that they can be taken out in terms anywhere from one to thirty years. But instead of proving income with bank statements or pay slips, consumers simply prove their holdings of approved cryptocurrencies.
But cryptos are volatile, and one’s holdings can turn on a dime. Many have seen their value plummet at various points this year. The price of Bitcoin dropped this week below its closely-watched level of $20,000 per coin, while Ethereum is down 60% from its all-time high.
An independent researcher has predicted that another Bitcoin crash may be coming as Ethereum rolls out new technology today, and recommended investors sell off their holdings.