Breaking: Bitcoin backed mortgage to allow home purchasing without a credit score

Milo Credit, a Miami-based business, is offering Bitcoin-backed mortgages to allow consumers to buy homes without trading their coins.

Selling cryptocurrency for fiat currency is a taxable event in the United States, as it is in most other nations.

This means that any gains or losses achieved since the purchase are taxed at the time of sale, as required by the competent government. If the crypto holder made a profit on the sale, the tax liability might be substantial.

Users have to hold the value of the property

According to reports, a Florida man named Vincent Burniske has received a “30-year fixed-rate mortgage-backed by a portion of his Bitcoin and Ethereum assets.”

Milo Credit’s mortgage promises to enable homeowners to “leverage your cryptocurrency to invest in real estate.” Our plan is similar to yours — keep HODLing.”

Rates are as low as 3.95 percent, according to its website, with the cryptocurrency held in custody by Gemini and Coinbase.

The crypto mortgage offering has a maximum loan amount of $5 million, but it requires at least 100 percent of the loan value in cryptocurrency to be secured against the loan.

Unlike standard mortgages, which can go as low as 3.5 percent of the loan value, this crypto mortgage requires you to hold the whole value of the property you are acquiring in cryptocurrency.

The cryptocurrency is then housed in separate sub-accounts with Gemini and Coinbase to guarantee that all coins are kept separate.

No credit score required

However, Milo Credit does not require a FICO credit score in order to obtain a mortgage. The cryptocurrency’s value is regarded as sufficient to ensure creditworthiness.

This fine print might be devastating for many people struggling to get on the property ladder.

6ix9ine has made a video demonstrating how you can be wealthy without being considered mortgage-eligible in today’s culture.

He later revealed that the money in the video was a sham, but the message still resonates with many alternative investors and gig economy employees.

To be authorized for a mortgage, self-employed individuals must first clear a series of hurdles. Most mortgages need you to have a good credit score.

However, having a decent credit score isn’t the only requirement; you might also be turned down if you don’t have one.

Do users have to worry about anything?

A standard mortgage can cause problems if the housing market drops, causing you to lose equity in your home.

This is the situation in which you owe more than the worth of your home. If you have a $100,000 mortgage on a $120,000 house and the housing market falls by 20%, your home is worth $96,000 but you still owe $100,000.

In other situations, the bank may request additional collateral or, in the worst-case scenario, foreclose on your home.

Hundreds of thousands of houses were repossessed during the 2008 mortgage crisis.

With a crypto mortgage, on the other hand, you could rely on the price of Bitcoin to secure your home.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing