Miami-based fintech Milo has started to diversify its portfolio for investors with digital holdings by offering its first crypto-mortgage refinancing product, the company announced on Tuesday.
The new offering comes five months after the fintech’s 30-year crypto-mortgage purchase product came to market and reached $10 million in origination volume. HousingWire first reported on the lender’s plans to debut refinancing products at the beginning of July.
“Based on the success of our crypto mortgage offering, we are now able to empower those who would have liked 100% financing via a crypto mortgage when purchasing their home,” Josip Rupena, CEO and founder of Milo, said in a statement. “With our crypto refinance, they can benefit from having access to their home equity when attractive investment opportunities come up.”
Milo is offering a cash-out refinance, a product that allows clients to replace their current mortgages with a new one to take advantage of better loan conditions, such as lower rates and longer terms, and withdraw a portion of the home equity in a lump sum.
However, with Milo’s product, borrowers can pledge their crypto assets – including Bitcoin, Ethereum and a few stablecoins, such as USD Coin and Gemini Dollars – and their property to cash out up to 100% of their property’s appraised value. Milo maintains the crypto in regulated custodians, the platforms Coinbase and Gemini.
It’s possible to borrow up to $5 million for investment properties in the refi product, according to the company’s website. The product has a fixed rate starting at 7.95%. Milo is not currently offering mortgage solutions outside the United States.
“Milo’s crypto refinance offering is a game-changer for those who previously sold their crypto or took out a short-term crypto loan to buy a home in cash,” the company explains in a news release. “This solution allows them to extend the repayment term to 30 years and gain access to the financing they would have preferred from inception.”
The fintech also launched an undercollateralized mortgage on Tuesday.
Borrowers can take 100% of the property’s value by only pledging 40% of the loan amount in USDC. “Many crypto consumers are already earning and spending exclusively in the digital world,” said Rupena. “Our USDC offering simply helps these consumers build a bridge to the real world.”
Milo, a licensed and insured direct lender, also offers non-crypto mortgage products for U.S. and foreign nationals to purchase or refinance a home in the U.S..
The company claims it has originated $100 million in loans through its more traditional mortgage line — with applicants hailing from more than 90 countries, according to a news release announcing Milo’s crypto-mortgage milestone.