Hello!

Just wanted to reach out to the community and see if anyone had sourced some or all of their down payment funds from cryptocurrency (bitcoin, ether, ltc). As you may know there has been an explosion in prices recently and I would love to purchase another property using some of these funds. Has anyone had any luck with this? Would love to hear your story!

Why not just sell the crypto and use the cash for your downpayment, if that's the plan?

@Taylor L. - yep that is the plan! In my initial property purchases I have had to source where the down payment funds have come from. Since it would be coming from a crypto exchange (Gemini, Coinbase, Kraken) - services which may not be typical for a traditional bank, I was hoping to catch someone that had had some experience doing so and see if there were actual issues or not. I hope that makes sense.

@Andres Vanegas If you've seen some of the gains that the overall Crypto market has in recent months, you'll definitely want to keep that tax bill in the back of your mind. 
That said, if it's converted to cash, I don't foresee any issues for qualification. If anything, just let the cash season in your savings account for a few months. 
All that said, probably best to find a lender you want to do business with, and consult with them. Every underwrite situation might have different quirks. Unfortunately, I don't have any NY lenders in my network, but I'm sure you can find a great option right here on BP. Best of luck! 

Originally posted by @Andres Vanegas :

@Taylor L. - yep that is the plan! In my initial property purchases I have had to source where the down payment funds have come from. Since it would be coming from a crypto exchange (Gemini, Coinbase, Kraken) - services which may not be typical for a traditional bank, I was hoping to catch someone that had had some experience doing so and see if there were actual issues or not. I hope that makes sense.

 One option might be is to take a loan out it to skip the tax hit. You can get upto 50% or so. Good luck! 

@Matt R. What service? Coinbase does that for BTC at 8% interest only for a year. Not familiar with any others.

I think the bank may have some more trouble with that no? Maybe since it is an asset secured loan they may let it fly.

60 day seasoning of cash in the bank seems the safest route at the moment. Even though it is fairly straight forward to demonstrate custody through Coinbase now. It also brings a sense of legitimatcy now that they are public.

Originally posted by @Andres Vanegas :

@Matt R. What service? Coinbase does that for BTC at 8% interest only for a year. Not familiar with any others.

I think the bank may have some more trouble with that no? Maybe since it is an asset secured loan they may let it fly.

60 day seasoning of cash in the bank seems the safest route at the moment. Even though it is fairly straight forward to demonstrate custody through Coinbase now. It also brings a sense of legitimatcy now that they are public.

There are several doing the loans. Check a few perhaps. Nexo is one. No seasoning required. Good luck.