Buying a house is never easy. Between finding the right one, mustering up the funds necessary for a down payment, and signing all the required paperwork, it can be rather overwhelming, and it’s probably one of the biggest and most important decisions you’ll ever make.
You Can Buy a House with BTC or ETH
Up until this point, buying a house was especially difficult for crypto fans, as many mortgage companies were not willing to accept cryptocurrency in exchange for a valid dwelling. Now, however, it looks like all that is beginning to change, as there are several new mortgage and real estate firms popping up all over the United States that are willing to say “yes” to bitcoin and even Ethereum payments for a house.
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Right now, purchasing a home in the crypto sector appears to be led by two primary companies. They are called Milo and Figure, and both provide loans that are equal to 100 percent of the borrower’s alleged cryptocurrency value. There are also no down payments required.
Milo provides loans of up to $5 million, and Figure will provide as much as $20 million for crypto homebuyers. While both will accept bitcoin and Ethereum, Milo will also allow users to purchase their homes with stable coins. Similar with traditional institutions, both companies provide loans of up to 30 years. Right now, users can gain access to loan interest rates of anywhere between 3.95 percent and 5.95 percent.
Josip Rupena is the CEO and founder of Milo. In a recent interview, he discussed the methods his company uses to determine if a crypto fan is in a solid position to purchase a house. He stated:
We’re still going to ask for an appraisal and title insurance. We’re going to look at this person’s credit profile if they have one.
One of the cool things about buying a house with crypto is that the digital assets are never technically spent. Rather, they are utilized for collateral purposes, meaning if there is ever a time you cannot make your mortgage payment, whatever crypto you have onboard that equals the amount due at the time will be taken to satisfy the requirement. Rupena says:
It’s a fundamental innovation around a mortgage where you’re combining two assets and being able to deliver the desire of the consumer, which is continuing to own both of them, and hopefully they both appreciate over time.
While this is certainly an interesting way of doing things, some financial analysts warn that there are risks involved with using one’s crypto as collateral for a house. Richard Levin – chair of the fintech law firm Nelson Mullins Riley & Scarborough – says:
Anyone that has a digital asset that is posting that as collateral for their loan should proceed with a degree of caution.
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