Topic: Using Bitcoin as down payment funds to purchase a new home with a mortgage... - page 2. (Read 4085 times)
July 01, 2017, 03:35:08 PM
Of course if the Bitcoins are first converted into fiat this is possible. Why wouldn't it be?
July 01, 2017, 03:17:51 PM
Our loan funded and title recorded the new deed on Thursday 6/29/2017. Our client now has the keys to his new home and is in the process of putting doing some home improvements before moving in with his family.
Now I know people would think this would have been far more successful if Bitcoin was used and wired directly into escrow, but escrow companies are not yet set up to be able to store and/or sell crypto-currency.
When buying in the United States, you can't wire in Euros, Pesos, Yen, or any other foreign currency....it all has to be converted to USD first, but this was definitely a major step in the right direction.
Now I know people would think this would have been far more successful if Bitcoin was used and wired directly into escrow, but escrow companies are not yet set up to be able to store and/or sell crypto-currency.
When buying in the United States, you can't wire in Euros, Pesos, Yen, or any other foreign currency....it all has to be converted to USD first, but this was definitely a major step in the right direction.
June 29, 2017, 11:01:35 AM
Ok, What if you can prove that the bitcoins you received, came from mining? It was not transferred from one address to another or through some doggy sites? Why do you have to make use of third parties like Coinbase? Do they do the dirty work to filter the money launderers from the legit users for you? You just need to read this forum and other platforms and you will receive several complaints from legit users, who lost their accounts at Coinbase for very silly reasons.
Why do you want to force people to make use of one payment processor or exchange? Did you cut a deal with them, if you use them?
Why do you want to force people to make use of one payment processor or exchange? Did you cut a deal with them, if you use them?
That would work too. At the point it becomes discretionary to the specific underwriting department who is underwriting the loan. Don't get me wrong but you are totally missing the point if you think I'm trying to pigeon hole people into coinbase. That is the complete opposite of what I'm trying to do.
Lending guidelines in the United States require all down payment funds to be seasoned for a minimum of 60 days. But if you could clearly document the original purchase of the bitcoins and then paper trail all the transfers and the sale at the end (I know this is against the ideology of a lot of bitcoin users), you should be able to use the funds from the proceeds of the sale of the bitcoins without seasoning the funds for 60 days. I'm trying to show people an additional way to potentially use their BTC if they've been stockpiling them for awhile.
June 29, 2017, 03:02:14 AM
That would be a HUGE milestone and even though it won't make an impact on the price or the like, but would be a historical milestone for both bitcoin and the banking industry too, incorporating a digital-only currency into a mortgage payment system.
June 29, 2017, 01:11:39 AM
Ok, What if you can prove that the bitcoins you received, came from mining? It was not transferred from one address to another or through some doggy sites? Why do you have to make use of third parties like Coinbase? Do they do the dirty work to filter the money launderers from the legit users for you? You just need to read this forum and other platforms and you will receive several complaints from legit users, who lost their accounts at Coinbase for very silly reasons.
Why do you want to force people to make use of one payment processor or exchange? Did you cut a deal with them, if you use them?
Why do you want to force people to make use of one payment processor or exchange? Did you cut a deal with them, if you use them?
June 29, 2017, 12:34:05 AM
We have successfully used bitcoin as down payment funds. They had to be converted to USD first (as bitcoin could not be sent directly to escrow).
I don't understand why you say you've been successful. It's a failure to me because those bitcoins had to be exchanged to fiat for the loan to be accepted.
We are years away from escrow allowing bitcoin to be sent directly to them for an earnest money deposit or a down payment. Do you own a home, or have you gone through the loan process before to purchase a new home within the past few years in the United States? If you have, then you would realize that selling bitcoins and then being able to use it right away for a down payment is a big success.
For BTC to be sent directly into escrow, escrow would have to be willing to wallet and hold the bitcoins and eat the volatility because funds are held in escrow for 30 days or sometimes longer.
June 29, 2017, 12:30:41 AM
I think this is quite complicated. Similar to the same incident earlier bitpay helped a person when the bitcoin price was around the value of about $1200. In that the advancing was done when the price was around $800 and the documentation took place when price was around $1200. This price difference gave the user a big profit margin that he own a Lambo after his documentation. Here I would wish to know what's the profit made through this long process.
June 29, 2017, 12:27:30 AM
While I do think that it is wonderful that you're trying to get the community involved and all that, I really wouldn't be doing something like this unless you're somewhere working with some sort of expert to be able to find out if you're going to not be getting business due to not accepting Bitcoin. Because if you think about it in the terms of 'people are still going to need mortgages no matter what' you can come to think that you're going to be wasting time with all of this and not really helping anyone in the long run. Though if there are only people with Bitcoin that are going to be using mortgages and bitcoin then so be it.
Thanks
My business primarily comes from local realtors and all referrals. I have been in the industry for a long time so I have a book of business. This one off was more of an experiment to see if we could get investors to allow bitcoin into a sellable mortgage. It works, so if I can help a few extra people then cool, if not...that's ok too
June 29, 2017, 12:22:18 AM
While I do think that it is wonderful that you're trying to get the community involved and all that, I really wouldn't be doing something like this unless you're somewhere working with some sort of expert to be able to find out if you're going to not be getting business due to not accepting Bitcoin. Because if you think about it in the terms of 'people are still going to need mortgages no matter what' you can come to think that you're going to be wasting time with all of this and not really helping anyone in the long run. Though if there are only people with Bitcoin that are going to be using mortgages and bitcoin then so be it.
June 28, 2017, 05:24:49 PM
We have successfully used bitcoin as down payment funds. They had to be converted to USD first (as bitcoin could not be sent directly to escrow).
I don't understand why you say you've been successful. It's a failure to me because those bitcoins had to be exchanged to fiat for the loan to be accepted.
June 28, 2017, 01:58:42 PM
As a new update as of 6/28/2017 we are all cleared to fund and record the loan tomorrow making our client a new homeowner .
Final loan documents were signed at the end of last week
We have successfully used bitcoin as down payment funds. They had to be converted to USD first (as bitcoin could not be sent directly to escrow). Escrow companies are not in the business of holding bitcoin, nor will they convert currency...just as you could not send Yen or Yuan, or any other foreign currency as down payment funds to purchase a home in the United States.
But if you have purchased a home within the last few years, you understand the nightmare that comes along with verifying all of your down payment funds.
If anyone is looking for some guidance or can use some assistance getting pre-approved or ultimately approved to purchase a new home, please feel free to PM me.
.Final loan documents were signed at the end of last week
We have successfully used bitcoin as down payment funds. They had to be converted to USD first (as bitcoin could not be sent directly to escrow). Escrow companies are not in the business of holding bitcoin, nor will they convert currency...just as you could not send Yen or Yuan, or any other foreign currency as down payment funds to purchase a home in the United States.
But if you have purchased a home within the last few years, you understand the nightmare that comes along with verifying all of your down payment funds.
If anyone is looking for some guidance or can use some assistance getting pre-approved or ultimately approved to purchase a new home, please feel free to PM me.
June 08, 2017, 01:56:31 AM
As an update for today...the loan has been conditionally approved and our appraisal has come in higher than purchase price. We are probably going to have to go with the path of least resistance and just use monies from the sale of bitcoin from back in March because then we can just use an April and May bank statement as the down payment funds without having to verify the bitcoin sales.
I did get the green light to be able to use bitcoin sales without any seasoning of the funds, but we would have to be able to clearly demonstrate that the coins have been sitting in the wallet for at least two months. So transferring bitcoin from cold storage into a hot wallet and then selling the coins wouldn't work at this point because the trail of money goes way over an underwriter's head at this point in time.
I did get the green light to be able to use bitcoin sales without any seasoning of the funds, but we would have to be able to clearly demonstrate that the coins have been sitting in the wallet for at least two months. So transferring bitcoin from cold storage into a hot wallet and then selling the coins wouldn't work at this point because the trail of money goes way over an underwriter's head at this point in time.
June 05, 2017, 10:16:47 PM
If bitcoin will be used as a direct payment of the mortgage loan then it is most likely impossible for banks to accept a volatile currency as down payment of funds and to buy anything you want this seems no different from a regular cash being paid in banks, i guess banks will only accept bitcoin as direct payment if it gets to valuable inthe future and matured from volatility which it will as institutional investors has decided to invest big amounts of cash in this digital currency but first segwit and the lightning network must be implemented first to make bitcoin mainstream. My only question is if bitcoin was already converted into fiat currency how is this different in paying in cash?
June 05, 2017, 09:45:34 PM
Maybe I’m missing something but I don’t see how this is different than any other hard asset begin sold first, converted into dollars, and then using those dollars to buy whatever you want, this seems like a standard transaction to me and I don’t see why anything other than the usual procedure will be needed in this case.
June 05, 2017, 07:06:13 PM
Reading this thread it is actually pretty neat to see this progressing, I saw the OP in its infancy and I didn't think that it would really end up going anywhere, but hearing that the escrow will be happening soon is pretty neat.
Would you mind going into a bit more detail as to how the whole scheme is supposed to work? I get the part about it using Bitpay/Coinbase, but I'd like to see how the rest of the system is structured. Sounds interesting otherwise, good luck with the project. A 10% down payment is pretty significant if it all goes through Bitcoin.
Would you mind going into a bit more detail as to how the whole scheme is supposed to work? I get the part about it using Bitpay/Coinbase, but I'd like to see how the rest of the system is structured. Sounds interesting otherwise, good luck with the project. A 10% down payment is pretty significant if it all goes through Bitcoin.
June 05, 2017, 06:59:48 PM
So this a reality?
Without any issues then we can all do this.
Congratulations too bitcoin on becoming mature if this is in fact a reality as of now.
Without any issues then we can all do this.
Congratulations too bitcoin on becoming mature if this is in fact a reality as of now.
June 05, 2017, 06:58:54 PM
Hey guys...I am in the mortgage banking industry. I am currently working on a deal to incorporate bitcoin into the down payment funds for a new purchase home loan.
I haven't seen this done before. Have any of you? I have seen homes sell for 100% bitcoin, but that is the same as purchasing a home with cash.
We are in contact with Fannie Mae, and it looks like it can be done as long as the bitcoins are first converted into US dollars and then deposited into a US bank account. If you know banking guidelines, then you know that most money has to be seasoned for 60 days before it can be used for down payment funds. We may be able to get around this if you can clearly be able to source the ownership of the bitcoins and clearly document the sale of the bitcoins along with the deposit into your bank account (like with a coinbase transaction history).
Do any of you have experience with this, or would you like to hear how it works out?
I haven't seen this done before. Have any of you? I have seen homes sell for 100% bitcoin, but that is the same as purchasing a home with cash.
We are in contact with Fannie Mae, and it looks like it can be done as long as the bitcoins are first converted into US dollars and then deposited into a US bank account. If you know banking guidelines, then you know that most money has to be seasoned for 60 days before it can be used for down payment funds. We may be able to get around this if you can clearly be able to source the ownership of the bitcoins and clearly document the sale of the bitcoins along with the deposit into your bank account (like with a coinbase transaction history).
Do any of you have experience with this, or would you like to hear how it works out?
You are talking about mortgages and you say you are in the mortgage banking business. You should know it better than us. It won't work. Because not a single bank in the world would accept a highly volatile asset as mortgage payments. We are talking about 10 to 30 years at least. If bitcoin becomes too valuable, the dude who owes money won't afford to buy them probably goes bust. If bitcoin loses value, bank gets fucked.
Nope. Won't work.
I am a mortgage bank, I have also been in the industry 15 years. I don't think you are understanding how the bitcoin would be used. The bitcoin would be sold via coinbase, and then those USD would be used for down payment. Generally with down payment funds all non-payroll deposits into your bank account would have to be sourced, which is when the bitcoin deposit would be noticed and disqualified from "usable down payment funds."
We as the bank would not be holding bitcoin at all...we would be using proceeds from the sale of bitcoin.
June 05, 2017, 06:54:19 PM
Using bitcoin to purchase a home does not sound too safe a thing to do to me. I would advise caution to anyone trying to do such a transaction.
http://www.pcadvisor.co.uk/how-to/security/how-avoid-solicitor-conveyancing-email-scam-that-costs-house-buyers-3653388/
you sure about that?
June 05, 2017, 06:47:31 PM
Using bitcoin to purchase a home does not sound too safe a thing to do to me. I would advise caution to anyone trying to do such a transaction.
June 01, 2017, 02:15:42 AM
If there is any difference in advances what is the difference
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