The recent boom in cryptocurrency has generated a lot of questions in terms of how the agencies view its use for down payment and closing costs. Here is what we found:
Fannie Mae and Freddie Mac: Neither agency addresses assets from cryptocurrency. Both agencies consider this currency “liquid assets” and require the same documentation type for any other liquid asset.
FHA and VA: Neither agency allows specifically for cryptocurrency to be used as an acceptable form of down payment. The best approach would be to liquidate any cryptocurrency and deposit the proceeds into the bank for 60 days before they are usable.
USDA: No policy on this topic. Also recommend liquidating any cryptocurrency and depositing the proceeds into the bank for 60 days before they are usable.
It is wise to be aware of any overlays each lender might have with regards to cryptocurrency as many will not allow usage regardless of what the agencies say.
If you have questions about cryptocurrency as a form of down payment or need help with financing, call or text Mike Stoffer (NMLS# 373858) of Stoffer Mortgage at (330) 936-2312.