Fintech Platform to Debut With Rent Rewards, Mortgage Rate Buydowns
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In what could certainly be described as a sign of our times, a Dallas-based startup is launching a new crypto-fueled fintech platform with a digital rewards program that can be leveraged to secure a lower mortgage rate.
This might sound like the brainchild of some tech investor out of California, but it’s actually the latest project of brothers Aaron and Zach Ipour, co-founders of one of the most prolific homebuilding outfits in the D-FW, Megatel Homes.
Housing affordability has obviously become a huge issue in recent years, with surging home prices locking many would-be buyers out of the market. MegPrime, the Ipours’ new venture, could help aspiring homeowners afford a listing in a pretty big way.
Alongside home prices themselves, elevated mortgage rates and saving money for a down payment are cited as some of the biggest barriers to homeownership, especially for younger folks.
“We realized that we really need to come up with a broader vision, a model that truly offers incentives to create the opportunity for renters to move to homeownership,” Zach Ipour said, speaking with CandysDirt.com.
In a nutshell, MegPrime is a payment platform users can make payments with wherever it’s accepted. Within the app, you can buy and sell MP Token, the new cryptocurrency powering the platform. Those funds are held in a digital wallet, which can be tied to an upcoming pre-paid debit card to use online and at brick-and-mortar stores.
MegPrime’s rewards program works pretty much like any other: use the app to make payments and earn rewards. Those rewards, however, are paid out in MP Token. Many of the rewards revolve around housing payments, but the real selling point for aspiring homeowners is users gain access to low mortgage rates from participating lenders.
For instance, MCI Mortgage, Megatel Homes’ preferred lender, can offer MegPrime users mortgages as much as 2% lower than the roughly 6% we’re hovering around now, subject to terms and conditions, of course. Ipour explained that Megatel Homes is supporting the buydown rate.
Crypto-skeptics might balk at the notion considering the medium’s characteristic volatility, but Ipour said more risk-averse users can easily trade MP Token for stablecoin or sell for good old fashioned USD.
“There’s no obligation. They would pay the minimum earnest money deposit through the MegPrime app to make MegPrime token, and they go through the pre-qualification process. They get qualified, they purchase a loan, and they purchase a house with the 30-year fixed loan, and they would enjoy [that rate] for the duration of that mortgage,” Ipour said. “If they decide to pay their mortgage with the MP token, there are future incentives for that, but there’s no obligation.”
Renters who hope to get into a home can also benefit from MegPrime rewards. Platform users who pay their monthly rent through the app using MP Tokens can earn 10% back or as much as 20% if they live in an affiliated property. Then, when it’s time to enter the housing market, you can get some extra help with the down payment.
“The part that will revolutionize homeownership with MegPrime and leveraging the blockchain technology is the incentive that we provide at the time of closing when you purchase a home,” Ipour said. “You will receive 100% of your past 12 months’ rent that you paid with MegPrime token, up to $25,000.”
MegPrime is expected to officially launch in late February following the U.S. Securities and Exchange Commission’s issuance of a “no-action letter” in January, which basically means the SEC will not currently take action against a proposed business activity when existing rules aren’t clear.
President Donald Trump’s administration has been very open to the further integration of cryptocurrencies into the mainstream economy. Other fintech platforms have also been jumping into the game, finding ways to leverage existing crypto wealth to facilitate real estate purchases.
“I would say the horse is out of the barn. It’s kind of hard to put it back in again,” Ipour said. “We believe more and more companies will come to the market and promote this real-world asset integration with cryptocurrency and blockchain technology.”
