3 questions about Milo’s new ‘Crypto Mortgage’ that lets you borrow against crypto to buy a home

This post originally appeared on The Basis Point: 3 questions about Milo’s new ‘Crypto Mortgage’ that lets you borrow against crypto to buy a home

Fintech lender Milo is in the early stages of rolling out a crypto mortgage. In the launch announcement and on their site (links below), the company implies you’re borrowing against your crypto to finance up to 100% of a home purchase.

I haven’t talked to the Milo team yet but as crypto goes mainstream, firms trying to bring it into the rest of mainstream consumer finance — housing included — are worth watching.

So for now, I have 3 questions on this crypto mortgage — if anyone knows the answers (including Milo team members) please comment below or ping me directly:

1. Is this a loan that uses the homebuyer’s invested crypto as collateral, and then the homebuyer uses loan funds to buy a home on their own?

2. Or is the loan a lien that gets recorded against the property?

3. If it is a lien recorded against the property — aka a mortgage — is it a Milo balance sheet loan? Or a non-Fannie/Freddie loan backed by investors who’ve approved the use of crypto-denominated assets and loan-to-value ratios up to 100%? Or is does it somehow qualify for Fannie/Freddie guidelines?

Look forward to learning more about Milo’s crypto mortgage, and will post more details soon…

___
Reference:

Milo Launches First U.S. Crypto Mortgage (launch announcement)

Milo Crypto Mortgage (briefing on their site)

DO YOU LIKE MONEY? GET MORE AT THE BASIS POINT®

WAKE UP CALL: Mortgage Rates Already .375% Higher Than New Year

Redfin buying Bay Equity for $135m adds $8.5b in mortgage volume & creates one-stop home buying, selling, financing for consumers

Mortgage Rates Spiked From 3.25% Late-2021 To 3.625% Early-2022. Is the Worst Over?

Advertisement