- According to Investopedia, Bacon Protocol has been issuing NFT mortgages since November, with loan rates as high as 3.1 percent, significantly less than the 5.55 percent rate on a standard 30-year mortgage.
- It was created with the Teller lending system and is backed by the TrueFi project, which provides uncollateralized cryptocurrency loans. USDC.homes can offer 30-year mortgages worth up to $5 million with a 5.5 percent interest rate and a 20% down payment.
- Over the Polygon network, the USDC.homes crypto mortgages platform provided its first crypto loan to an Austin resident who purchased a $680,000 condo with a $500,000 USD Coin (USDC) stablecoin loan.
After leveraging their credit score to secure a loan denominated in USDC stablecoin over the Polygon network, an Austin resident is now a proud homeowner. A new homeowner in Austin, Texas, has purchased an apartment via a platform that allows cryptocurrency holders to obtain regular uncollateralized mortgages based on their credit scores. Over the Polygon network, the USDC.homes crypto mortgages platform provided its first crypto loan to an Austin resident who purchased a $680,000 condo with a $500,000 USD Coin (USDC) stablecoin loan.
30 Year Mortgages Worth Up To $5 Million
This new platform mixes traditional lending practices like relying on a borrower’s credit score to assess eligibility with emerging decentralized finance (DeFi) innovations like cryptocurrency staking to assist pay off the debt. The platform issues loans in USD, but borrowers can pay with Ether (ETH), Bitcoin (BTC), or USDC. It was created with the Teller lending system and is backed by the TrueFi project, which provides uncollateralized cryptocurrency loans. USDC.homes can offer 30-year mortgages worth up to $5 million with a 5.5 percent interest rate and a 20% down payment.
Damages Of Taxation
Each borrower’s down payment is staked rather than sold, and it accumulates interest that may be used to assist homeowners pay off their loans. The usual necessity to liquidate one’s crypto assets for fiat to receive a loan exposes American borrowers to the damages of taxation, fees, and a loss of position, according to a Wednesday blog post from Teller. In the crypto business, real-world loan issuance is becoming more widespread. According to a Tuesday article from Housing Wire, the LoanSnap platform plans to expand its services to licensed mortgage brokers this year.
According to CEO Karl Jacob, LoanSnap has issued billions of dollars in traditional mortgages utilizing artificial intelligence (AI) loan origination technology. His company’s services have also expanded into the crypto realm, with Bacon Protocol collaborating with DeFi lenders to link mortgage values to a nonfungible coin (NFT) According to Investopedia, Bacon Protocol has been issuing NFT mortgages since November, with loan rates as high as 3.1 percent, significantly less than the 5.55 percent rate on a standard 30-year mortgage.
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Source: https://www.thecoinrepublic.com/2022/04/27/teller-took-out-such-an-unsecured-debt-defi-mortgages-on-an-austin-property/