Moon Mortgage, a crypto lending platform, has introduced its own “crypto-mortgage.”The aim is to “help cryptocurrency investors materialize their digital assets” without having to sell.This product is for bitcoin hodlers who want to try real assets, but not give up their ultimate goal.This follows the same path as Figure’s crypto mortgage, which was launched in March 2022.This product has a minimum loan of $1 million. Continue reading to find out more.
Moon Mortgage Crypto Mortgage: How it Works
You can pledge your crypto assets to secure a home loan, similar to Figure.Moon Mortgage places a traditional lien on the property, and the borrower is charged a “competitive interest rate.”The interest rate or the loan term and payment requirements are not clear.
A good rule is to put up 100% of the mortgage amount in crypto. For example, if you want a $1,000,000 mortgage, you will need to give $1,000,000.Stay tuned for future product collateral requirements.Moon Mortgage states that it will not liquidate your assets unless the value drops below a pre-agreed upon value during the underwriting procedure.Crypto mortgages can be used for either a home that is owned by the borrower or a property purchased as an investment.At this time, the crypto mortgage product of theirs is only available to homebuyers in Colorado, Florida and Texas.Investors in “most states across the U.S.” will be able to access this program soon.
How to Apply
There is a waiting list that you can join while the product is still live. You’ll have to wait and add your name.If you are selected to apply, all you need to do is submit an online form, which takes only 15 minutes.You’ll go through the same process as a traditional mortgage, including uploading documents, confirming assets, ordering an appraisal and going through the underwriting process.They are familiar with the crypto-investors and entrepreneurs so even those who don’t have “normal jobs” can qualify.When the loan is closed, your crypto collateral will be stored with Anchorage Digital. They refer to this bank as the only federally-chartered crypto bank.Crypto assets are not insured by the FDIC and can lose their value.Bitcoin (BTC), USD coin (USDC) and ethereum(ETH) are supported assets.Moon Mortgage claims that the average closing time is as low as 14 days.
Who is this loan product for?
Also known as the HODL crowd. Also known as HODLers.Moon Mortgage says that people “could pay in cash” by selling their holdings.
They don’t wish to be labeled as “paper-handed investors” or to risk losing potential upside exposure.It’s people who want to benefit from real estate opportunities, or simply own a house, without having to part with their bitcoins or ethereum.The company says that customers can buy properties with cash flow using their cryptocurrency, and capture the appreciation in both their real estate and coins.They want to “enable fellow crypto investors to have their cake and eat it too” as well as “live it.”It sounds like a good deal as long as the economy continues to grow. You’ll also need to compare their rates and loan terms with a conventional home loan.