Miami Lenders Offering Home Mortgages in Digital Currencies

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Miami Lenders Offering Home Mortgages in Digital Currencies
07 Apr 2022
4 min read

News Synopsis

Some Miami developers have allowed buyers to buy homes in cryptocurrencies since at least 2021. Currently, a pair of Miami lenders are taking it one step further by offering mortgages in digital currencies.

A fintech company, Milo made the first crypto home loan in March when it approved a 30-year old mortgage in bitcoin for a Miami duplex. 

According to the company, the early response among homebuyers focused on other cryptocurrencies is very enthusiastic, and it is planning to double the size of the Miami office to 100 people to handle expected demand. 

Cryptocurrency mortgages are structured like traditional mortgages and are lent to homebuyers in dollars but appeal to those with large cryptocurrencies that they don't want to convert to dollars.

These mortgages require additional collateral in the form of cryptocurrencies, and the contracts allow the lender to take ownership of the house and additional collateral if the lender defaults. If the value of the crypto is reduced, the borrower may need to deposit more crypto or other collateral.

Propy, the Miami-based real estate technology company's CEO, got a lot of attention in February when it first settled a US real estate transaction as a non-fungible token (NFT).

Real-estate developer PMG has also accepted more than $20 million in cryptocurrency payments towards preconstruction purchases of about 60 condo units at its E11een Hotel & Residences.

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