Monday January 29, 2018 by The Mettle Group
Hi friends. My name is Josh Mettle with Fairway Independent Mortgage. And today we’re gonna answer the question I’ve been getting about cryptocurrencies and bit-coining. Can this be used, can these funds be used in a mortgage transaction for down payment to closing costs?
Now the reality is, with most mortgage lenders across the country, you can’t directly use the cryptocurrency as a down payment. What you’re gonna need to do is convert that cryptocurrency into cash, into US dollars, and deposit it into a depository account. Now the trick is, that underwriting is gonna want to see that that money has been sourced and seasoned. What that means is, underwriters want to know that it came from you. It was actually your money. And they want to see a seasoning that you’ve had ownership of those funds for at least 60 days.
Now that can be a bit of a challenge. For example, let’s say you have your money up on Coin base or some other exchange and then you move it over to your treasure wallet and there’s really no way to track that or get a statement, and that’s where some troubles can come. Now, it is possible to go back in and actually get into the block chain and see the dates and the IDs behind your Coin base account, your treasure wallet, or any cold storage wallet, and then put all these pieces together so that we can source the money was yours and season the amount of time that you had ownership.
Now, if you don’t want to get into all of that, let me tell you the easy way to do it. Once you sell or exchange your cryptocurrency into cash, move that money over to your checking or savings account, let is sit there for 60 days before you write your offer. That’s gonna be the most seamless way to do it. You won’t have any challenges, but if you have any additional questions, I encourage you to call or email me. Happy to hear a little bit more about your situation and let you know if we have any additional solutions. Thanks for listening.