Cryptocurrency as a downpayment

[Gabriel Tapang]

The lender I am currently working with for an out-of-state investment property has told me they have just recently started accepting crypto but only if the following guidelines are met:

1.  For the proceeds from a bitcoin or other digital currency exchange to be considered as an eligible asset, it must be converted to U.S. currency and deposited into an eligible asset account. All assets must be verified.

2.  The source of a large deposit may be from bitcoins or another digital currency, provided there is documentation to show the funds coming from the digital currency account that was owned by the borrower.

I am having issues with #2 because my personal digital wallet is not tied to my name, like most financial accounts - it is tied to a 42-character alphanumeric sequence. They are not accepting screenshots unless it shows a URL with my name showing on the account. It's already been 4 weeks past initial closing date because I have been going back and forth with the underwriter for clear to close and they are charging me $200+ per week to keep the rate locked at 4% :(

Has anyone had any luck using crypto to pay part/all of their downpayment with a lender? How were you able to do it? Thanks!

[Greg Scott]

Cash is king.

If you can show two months of bank statements with the cash sitting there, they typically don't ask "where did that come from".  Hopefully you converted your crypto to cash over 4 weeks ago and are nearing the point where you can show the cash was in the account.  You may, however, need to start over with another lender.