Topic: Using Bitcoin as down payment funds to purchase a new home with a mortgage... (Read 4008 times)

Grave digging this old thread since a lot has changed over the past couple of years.  Bitcoin can now be used as assets for down payment or reserves as long as it is converted into USD.   Up until pretty recently, you would have had to sell the bitcoin (or other crypto), and then let the funds sit there in your bank account for at least 60 days before it could be used in correlation with a home loan.   

The USD does not have to be seasoned as long as the owner of crypto account (i.e. Coinbase, etc) can be verified.

I have gotten a lot of questions on this, so I thought I would just provide a brief update. 

cryptocurrency can allow you to make a payment as ordinary money, if you make a deal with an individual. since in this case it can be written in the contract that you exchange values, the rate of which is fixed at the time of the transaction, and therefore can serve as an advance

Can’t you just take a screen dump?

I am trying to do this currently from Coin Base but they are not accepting the reports that are provided by Coin Base since they are CSVs.
I have also provided screen shoot from the account and they denied those as well.
How were you able to provide document ion for Coin Base?


Thanks

Unfortunately, everyone is a LONG way off from just being able to send in BTC (or any other crypto) directly to an escrow company as the down payment (if you are trying to obtain a loan).   The big jump that we were just able to make was the ability to sell the BTC and use it for down payment funds without having to leave the USD sitting in your bank for 2 monthly statements (which was generally required) for any conventional, FHA, or VA loan.  

I know that sounds like a tiny step, but anyone who has purchased a home in the USA in the past few years can vouch for the typical difficulty of going through the Underwriting process.   

I would be curious to know how it is in other countries. I've been fantasizing myself to buy at some point a home with the money originated by selling some cryptosurrencies and I guess that the possible complications are quite a mystery in most of the countries, as laws are missing to contemplate that you can get money selling bitcoins.

A mortgage traction like that happened in the Seattle area not long ago: https://www.seattletimes.com/business/real-estate/bitcoin-like-cryptocurrency-used-to-buy-home-in-tukwila-likely-a-first-for-seattle-area-market/.  Before the transaction closed, the crypto was converted to USD.

On another note, check out the ICO for RLCoin, an enterprise solution for loyalty: www.rlcoin.io.  The product has traction with 250 clients and partners in Europe and Asia.

I don't know much with other countries and how system goes, but in ours, I have witnessed firsthand that bitcoin were converted to fiat money and bought properties. He has a few good properties at present and he obtained it thru bitcoin.
Given that ,I believe bitcoin, if converted to fiat money can be used to buy any and all properties. It will then be the risk taken by the crypto exchanger should prices fluctuate.

Thanks, I'll look into it.  There have been several people who have sold their home for Bitcoin (and/or other cryptocurrencies), but most if not all of those transactions took place like an "all cash offer"  meaning that they buyer transferred the Bitcoin and then a title company recorded the buyer as the new owner of the property.   It is a little more complicated when trying to use Bitcoin as the down payment to obtain a loan because you need to get the investor to accept Bitcoin being a liquid asset.  We've managed to do it and expect it to become easier and easier as time goes on. 

The main challenge is that there are a lot of anti-money laundering guidelines that we have to be certain we are in compliance of.   

The first case in the world of buying an apartment for cryptocurrency was in Kiev. It is the capital of Ukraine. The deal was for Ethereum. She was served by lawyers from Ukraine and America. The seller was a Ukrainian millionaire and the buyer was a millionaire from America. You can take advantage of their experience. The name of the seller Mark Ginsburg.

Thanks Nick!  Hoping we can find you a home soon     Feel free to PM me if anyone has any questions.  Sorry for the delayed response back in December, I wasn't active on the forum, but I am back here and will be around to answer any questions or provide any help that I can to fellow Bitcoin users...

Hi everyone -

I am the client referenced above and I can confirm that everything keithers has said is true. I tried reaching out to multiple lenders which all said it was not possible before finding keithers on this forum, so I was initially pretty skeptical going into it. However, he quickly showed me that he was serious about his claims; and in fact, the whole process has been much easier than the first time I went through the process years ago with a big bank.

Additionally, he is incredibly responsive and easy to work with. He has also proven to be very knowledgeable both in terms of bitcoin/crypto and mortgages/real estate. I would highly recommend giving him a shot.

Nick

Was just able to get another client pre-approved in California to purchase a home with 100% of the down payment coming from Bitcoin.   He should be commenting here on how the process has gone so far.

It is definitely getting easier as time goes on

Things may vary state to state depending on which investors are lending in certain areas, so please don't hesitate to ask any questions.   

Hi Everyone, this is just a new 2018 update.

I know this thread has gotten a little old, but it has gotten a lot of interest.   Recently Fannie Mae and Freddie Mac have updated their guidelines to be a little more bitcoin friendly.

I currently have another 2 clients pre-approved that are working towards using Bitcoin for their down payment.   The Main difference now is that we do not have to have the USD sitting in the account for a month after the sale of the BTC.


If we can clearly papertrail the purchase of the Bitcoin, the sale of the Bitcoin (or Bitcoins), and match the corresponding deposit into your bank, the proceeds of the Bitcoin can now be used without having to season the funds.


If you have bought a home recently, or are currently trying to go through the process, you know exactly what I am talking about.   Please feel free to send me a PM.

Sorry I haven't been as active on this forum lately, but I will be frequently checking my PMs, as I have been able to help a few people already

Coinbase should be able to produce proof/account records for this matter, I could be wrong but we would have at CEX, provided the requestor identified themself enough. The purchases should be tied to fiat account action, or if the coins are old and from off exchange,  coin age (balance info) on the account should demonstrate previous ownership.

There needs to be a service wherbey you transfer those BTC over to the new service (call it ABCbitloans) and they lend you (in US dollars) x % against the underlying asset (bitcoin).

They hold your BTC, you use the cash (which they provide you with receipt/statement), and those funds can be transferred to wherever you like.

Bitloans then just either sells the BTC to recover loan less difference, or holds if they so wish.

I'm actually in a very similar situation. I have a assets of bitcoin spread across many wallets and I want to use bitcoin (even converted to cash) as a down payment on a house purchase.... this is proving to be quite difficult to the underwriters. They want proof that I actually own the assets. Converting it to USD beforehand doesn't work because they want to know where the money came from which brings me right back to where I am now. They want actual statements but I can't get statements to my knowledge. If I move the coins to say coinbase, it's still going to show that I just moved the coins there.

I've given them trade, purchase, and sell history from the exchanges; but that is not enough according to them; as nothing is actually tied to my personal information (email/name is not enough according to the underwriter).

I suggested that I'd give them all the addresses I'd be using with signed messages that they could verify... but the underwriter is having a hard time understanding how this whole concept works. They're proposing that family members simply gift me the money and I pay them back after closing; but no one in my family has this kind of capital.

I'm probably going to sell the bitcoin into USD and wait for 2 months for the cash to be seasoned. If you guys have suggestions on how I can prove to the underwriters that I actually own the bitcoin, it'd be appreciated.

So they only got the loan because they owned bitcoin and not cash LOL

Youre clearly misguided or naïve, no point in arguing with a fool.

Do you own a home? Have you gotten a home loan in the United States in the past two years? I'm assuming you haven't otherwise you would understand the process of verifying earnest money deposits for the initial deposits, and you would also understand the process of having to verify all transaction histories for the most recent two months of account statements for ANY account associated with the down payment OR the initial deposit.   If bitcoin was converted into cash within the last 60 days it would be disqualified from useable down payment funds.

You think I've done nothing, fine. Lol. You obviously have ZERO knowledge of the lending environment that we are in right now. If you don't believe me apply to buy a home, sell bitcoin and immediately  try to use it as a down payment right away and watch your offer fall right out of escrow

This has got to be the stupidest thread I have seen in months. They sold their BTC for cash then used the cash to get the loan, period. BTC NOT incorporated into loan approval or used as down payment, you the OP offer NO service to this community the average broker who doesn't know what BTC would.

Your thread makes ZERO sense in what you are trying to say was accomplished, end of story you did nothing thousands of brokers not do everyday for everyone else.

Goodbye