Let’s talk Crypto! We’ve had lots of questions surrounding cryptocurrency and home purchases. See below for everything you need to know…
Can you use your cryptocurrency as a down payment? Yes and no. If you convert the crypto currency into US currency into your checking or savings account, and the lender can source the original funds that purchased the crypto, then you can use those funds for your down payment.
The good news is that the funds do not have to “season,” meaning they don’t have to sit in your account for a predetermined time before they can be used, you can use them right away once the lender has verified the funds.
At this time, if you are getting a conventional loan (Fannie Mae + Freddie Mac) they are not allowing your down payment to be paid for in cryptocurrency directly.
Can you use your coinbase or similar accounts as reserve funds? No. If your loan requires a certain $X of reserves, your crypto assets will not be counted towards that. You will have to convert the cryptocurrency into US currency into your checking or savings account first, and have the lender verify the reserve funds. Talk with your lender about when you have to make the conversion.
Can you buy a home with cryptocurrency? Yes! If you have enough cryptocurrency to pay for the entire property as if it were cash, you may be able to find a seller who would accept cryptocurrency in lieu of cash.
If you have a certain type of real estate scenario you’d like to see happen with your crypto, please reach out. We love to get creative for our clients!
If you are a lender who specializes in helping buyers with cryptocurrency use their digital assets, please reach out! I would love to connect with you and add to the resources I have for my clients.
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