Can You Use Crypto To Qualify For A Mortgage?

Yes, you can use crypto to help qualify for a mortgage.  

Cryptocurrency has become an increasingly popular and valuable digital asset. Until recently, prospective homebuyers choosing to invest in crypto were not able to use their cryptocurrency when getting a mortgage. Currently, there are several options for borrowers looking to get a crypto-backed mortgage. 

Cryptocurrency can help borrowers qualify for an original mortgage or mortgage refinance. 

Ready to let your crypto help you qualify for a mortgage? Start your mortgage application today! 

Lenders can view cryptocurrency in one of two ways during the mortgage process: as assets or for a down payment. 

When applying for a mortgage, lenders will review an applicant’s assets. Lenders look at a potential borrower’s assets to gain an idea of their financial situation and determine whether they have the ability to cover payments if their financial situation changes. Some of the assets lenders look at are savings, investments and, as of recently, cryptocurrency.  

Lenders do allow cryptocurrency for your downpayment. However, you may have to be willing and able to convert it into U.S. dollars.  

If you are looking for a way to use cryptocurrency during the homebuying process without liquidating, borrowers can use their crypto as an asset when qualifying for a mortgage through RateFi. This product allows borrowers to use their crypto for their mortgage without giving it up. One of the requirements of RateFi is that it is just held in an approved wallet. 

If you are looking to use your cryptocurrency to make a down payment on a home, you will need to convert the cryptocurrency into U.S. dollars and transfer the funds into a more traditional account. 

When you move your funds out of crypto and into a more traditional account, like a bank or credit union, most lenders will require you to have the funds there for at least 60 days. These 60 days are known as a seasoning period, and afterward, the funds can be applied to your mortgage.  

If you want to use your crypto for a down payment within a seasoning period, you will be required to show documentation of the sale and transfer of your crypto into your account. 

Private banks and lenders may be more flexible when turning your crypto into a qualifying down payment. Some lenders may even allow unseasoned funds, especially if the documentation is clear and the rest of the application is strong. 

When using any cryptocurrency to buy a home, you will need to make sure it is properly documented during the underwriting process. 

The exact documentation will depend on your lender and the crypto you own. The purpose of these documents will be to show: 

• Purchases
• Holdings
• Transactions 
• Account details
• Conversions
• Verification and compliance with regulatory requirements

Depending on your lender, it could choose to look at your crypto portfolio instead of income verification. While cryptocurrency does increase a borrower’s net income, it’s a digital asset, so some lenders might not see it the same as cash in savings or income. 

Lenders that allow cryptocurrencies in the mortgage process may allow you to use your exchange statements as proof of funds. 

Exchange statements will show all transactions involving your crypto. Depending on your lender, you can use your exchange statements for proof of income or proof of funds when sharing assets on your mortgage. 

At the moment, most lenders that allow you to use cryptocurrency during the mortgage process will require that the crypto is widely recognized and a USD-backed stablecoin. 

Some lenders may accept the use of non-USD-backed stablecoin but still widely recognized cryptocurrencies, allowing you to use Ethereum or Bitcoin to qualify for a mortgage. 

Since using crypto during your mortgage is a newer process, not every lender will accept cryptocurrencies. So, finding the right mortgage lender for you, your crypto and your homebuying needs is that much more important. 

Rate understands how valuable and important an investment cryptocurrency can be, so that is why we’ve launched RateFi. RateFi allows potential homebuyers to use their crypto when getting a mortgage without needing to liquidate any crypto investments you may have. RateFi is not just for purchasing a home but also can be used for a mortgage refinance. 

Looking to use your crypto on a home purchase or mortgage refinance? Start your application today!