Buying a Home With Cryptocurrency Proceeds

Check the program before moving funds

Fannie Mae accepts eligible virtual-currency proceeds converted to U.S. dollars and held at a U.S. or state-regulated financial institution, with the required verification before closing. Its policy also requires documentation when a large deposit originated from the borrower’s virtual-currency account.

That rule does not mean every lender or program accepts the same documentation. Have the proposed loan reviewed before relying on the proceeds for the purchase.

Keep a clear trail from ownership to the receiving account

Ask what records will establish account ownership, the sale or conversion, and the transfer into the bank account used for closing. Keep complete statements and transaction records.

Avoid moving funds through extra accounts to make the deposit look unrelated to cryptocurrency. Additional transfers can make the source harder to document.

Handle earnest money and taxes separately

Do not pay an earnest-money deposit in virtual currency on a transaction governed by Fannie Mae’s virtual-currency policy. Ask the lender and closing agent to confirm the acceptable deposit source and method.

A sale can have tax consequences. Your tax adviser can help estimate obligations so the money reserved for closing is not also needed for a tax payment.

Before using the proceeds

• Confirm the program’s asset requirements.
• Collect ownership, exchange, sale, and bank-transfer records.
• Verify the available U.S.-dollar balance.
• Plan for closing funds, reserves, and any tax obligation.

Sources and program details

These references support the program details discussed above. The program selected for your loan and its current requirements control your application.

• Fannie Mae: virtual currency