Exclusive: CoinHomes is a new bitcoin-only startup aiming to disrupt the Mortgage industry. Headquartered in New York City, CoinHomes allows anyone in the US to buy a home by leveraging their bitcoin.
The new venture recently raised $20 Million of capital and will leave stealth mode in coming weeks. For the first time, the founders Arvin Bhangu and Taimur Sajid speak to the media at the Unconfiscatable Conference to share their story. Watch the exclusive first interview with Bitcoin News below:
Buying a home in the United States can be a real nightmare for bitcoiners. Applying for a loan is a tough challenge for those who don’t have the profile required by financial entities. And if liquidating precious Sats is not an option, it can get even more complicated.
As the United States is undergoing the worst inflation of the dollar in the last forty years, land and real estate have been in high demand. To own a home rather than to rent, is an important decision in these times.
Bitcoin lending services have already existed for some years but purchasing real estate with bitcoin is not an easy task yet. CoinHomes wants to disrupt the legacy mortgage industry with an innovative new bitcoin service.
According to its website, CoinHomes works as an intermediary in the purchase, sale and financing of real estate with bitcoin in the US.
According to Bhangu Sajid, Coin Homes presents an option for those who have enough Bitcoin to purchase a house but who cannot qualify for a traditional home loan. If you are a self-made Millionaire and Satoshi Trillionaire, banks often don’t want to deal with it. Legacy banking isn’t ready to cater for younger clients with more modern income streams.
CoinHomes wants to solve this pain point for bitcoiners.
The startup was formed as a solution to Bhangu’s own challenges to buying a property in the U.S.. Bhangu told Bitcoin News that every bank and lender he approached for a loan turned him down because they didn’t consider Bitcoin to be part of his net worth or a legitimate source of income, forcing him to sell 800 Bitcoin in January 2017 in order to buy a condominium.
The startup accepts bitcoin as collateral for mortgages, asserting that customers do not need to sell their funds in BTC to buy a home. Sajid and Bhangu are already looking at a number of closed deals and now want to scale up the business to become a mass product.
CoinHomes offers under-collateralized bitcoin loans without the risk of liquidations or margin calls, a very first for the lending space. The startup will act as a intermediary, requesting 50% of the property’s cost in BTC as collateral for the loan. Customers will then make monthly payments until the total amount borrowed has been paid off.
Bitcoin-only or shitcoin-friendly?
The project focuses on receiving deposits only in Bitcoin. Considering the case that a client arrives offering another currency such as ether, the founders shared their opinion in the outtakes below:
The founders are looking to launch CoinHomes in a few weeks, and Bhangu stated that he will be a speaker at this year’s Bitcoin Conference Miami. They also shared that they successfully managed to win a famous celebrity for a marketing stunt. We’re looking forward to seeing if CoinHomes will break Bitcoin Twitter soon!
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