Using Bitcoin as down payment funds to purchase a new home with a mortgage...

[keithers]

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

[1713902647]

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[1713902647]

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[keithers]

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.   

[nicholashscott]

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 -

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

[keithers]

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 -

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

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...

[warrior333]

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?


Edit 2/19/2018:    With proper documentation (and sourcing), Bitcoin can now be used for down payment funds without having to sell the BTC and hold the USD in your bank account for 30-60 days.   

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.

[keithers]

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?


Edit 2/19/2018:    With proper documentation (and sourcing), Bitcoin can now be used for down payment funds without having to sell the BTC and hold the USD in your bank account for 30-60 days.   

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, 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.   

[raniadaling]

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?

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.

This is not a bitcoin issue then. It is a money laundering issue.   Coinbase/Tax guys are gonna question the customer to death and will make him mad with their questions. Bitcoin has a big reputation among cyber terrorists/drug dealers/tax evaders.

Whoever was trying to make a down payment for his mortgage via coianbase is going to hate to be alive and probably won't succeed.

Since you are talking about coinbase, i assume you live in USA right? If so, it will be just like i expected. Forget it.

Your pessimism is unfounded.  Coinbase's situation with the IRS really has no relevance to down payments for mortgages.  I can see how people who can afford to buy a decent house might want to use Bitcoin for their mortgage and there's no real reason that it wouldn't work.

Will be following this thread.

Will keep it posted, as this progresses

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.

[rlclub]

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.

[CryptoChanel]

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.

[keithers]

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.

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.   

[prodigz]

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

[Bitlend]

Can’t you just take a screen dump?

[Wall_Streeet]

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

[keithers]

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.