Using crypto for a house deposit: proof of funds for your mortgage
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Lenders want the deposit as ordinary money in a bank account, plus documents showing it came from your own crypto. In the US, Fannie Mae and Freddie Mac both require crypto to be exchanged into U.S. dollars before it can be used for the mortgage transaction. In the UK, policies vary by lender, and at least one lender publishes criteria accepting crypto as a deposit source subject to full underwriting.
US: what the Fannie Mae Selling Guide says
The rule is in Selling Guide topic B3-4.1-04, Virtual Currency (topic dated May 4, 2022). Virtual currency that has been exchanged into U.S. dollars is acceptable for the down payment, closing costs and financial reserves, provided that:
- there is documented evidence that the virtual currency has been exchanged into U.S. dollars and is held in a U.S. or state regulated financial institution, and
- the funds are verified in U.S. dollars prior to the loan closing.
The same topic covers large deposits. A large deposit may come from virtual currency that was exchanged into U.S. dollars. In that case, the lender must obtain sufficient documentation to verify the funds originated from the borrower's virtual currency account. Virtual currency may not be used for the earnest money deposit on the sales contract.
What counts as "large" is set in B3-4.2-02, Depository Accounts. For purchase transactions, a large deposit is a single deposit that exceeds 50% of the total monthly qualifying income for the loan. If such funds are used for the down payment, closing costs or reserves, the lender must document that they come from an acceptable source. If the source is not documented, the unsourced amount is subtracted from the verified funds, and the remaining funds must still cover what is needed.
US: Freddie Mac
Freddie Mac's Seller/Servicer Guide, Section 5501.3(o), is short: any amount of cryptocurrency must be exchanged for U.S. dollars if it will be used as a source of funds for the mortgage transaction. That includes any funds the borrower must pay and borrower reserves.
Your lender may add its own requirements on top of these. Ask the loan officer which documents they want for funds that came from crypto.
UK: lenders decide case by case
There is no single UK rule for crypto deposits. Two groups will usually look at your source of funds:
- The lender. Banks and building societies are relevant persons under the Money Laundering Regulations 2017 (regulation 8), with due diligence duties. See why banks ask for source of funds.
- Your conveyancer. A firm providing legal services that takes part in buying or selling real property is an "independent legal professional" under regulation 12, so the same rules apply to them.
Lender criteria differ. As one published example, Accord Mortgages (part of the Yorkshire Building Society group) states in its broker criteria: "We can accept cryptocurrency as a source of deposit (subject to full underwriting)." Its separate criteria page states that it cannot accept income derived from cryptocurrency as a source of income. Other lenders may take a different view, and criteria change. A mortgage broker can check current criteria before you apply.
Convert early, keep the trail
- Sell in good time. Both US agencies require the money to be in dollars before it counts, and Fannie Mae requires it to be held in a regulated financial institution and verified before closing. Converting well before you apply means your bank statements already show the deposit, and the exchange records that explain it are ready.
- Use one route, in your own name. Sell on an exchange account in your name and withdraw to a bank account in your name. Transfers through friends, family or third-party accounts add links you then have to document.
- Keep the whole chain. Underwriters may ask how the crypto reached the exchange and what paid for it. Keep the purchase records, every wallet transfer with its transaction hash, the sale, the withdrawal and the bank receipt.
- Keep tax records. In the UK, HMRC requires records for each cryptoasset transaction, including dates, amounts, sterling values and bank statements.
- Plan the earnest money separately. Under Fannie Mae's guide, virtual currency cannot be used for the earnest money deposit.
What underwriters ask for: checklist
- Bank statements showing the deposit landing in your account.
- An exchange statement or transaction history in your name showing the sale into dollars or pounds and the withdrawal to your bank.
- Evidence that the crypto account was yours. Fannie Mae's wording is that the funds must have originated from the borrower's virtual currency account.
- If the crypto came from a self-custody wallet: the wallet's transfer history with transaction hashes, and proof that you control the address. See how to prove you own a crypto wallet.
- Records of the original purchase and the money that funded it.
- A short written explanation tying the documents together, in date order. This is not a formal requirement, but it helps a reviewer read the file.
How Fundsheet helps
Fundsheet makes a bank-style wallet statement PDF from public blockchain data for Ethereum, Base, Arbitrum, Optimism, Polygon and Bitcoin addresses. It lists every incoming and outgoing transfer with date, amount and value at the time in USD, EUR, GBP, PLN or CHF, plus totals per year and a first-hop origin section, so an underwriter can see how the crypto reached the exchange. You can add exchange CSV exports, parsed in your browser, and a signed message showing you control the address. Each report carries a report ID, a SHA-256 hash and a verification page; it is a factual trace from public data, not a legal opinion, and the lender decides. See a free preview at fundsheet.mintward.xyz.
This guide is general information, not legal, tax or mortgage advice. Ask your lender and your bank which documents they accept.
Sources
- B3-4.1-04, Virtual Currency (Fannie Mae Selling Guide)
- B3-4.2-02, Depository Accounts (Fannie Mae Selling Guide)
- Section 5501.3, Assets (Freddie Mac Single-Family Seller/Servicer Guide)
- MLR 2017, regulation 8: relevant persons (legislation.gov.uk)
- MLR 2017, regulation 12: independent legal professionals (legislation.gov.uk)
- Lending criteria: cryptocurrency deposit (Accord Mortgages)
- Lending criteria: cryptocurrency income (Accord Mortgages)
- Check if you need to pay tax when you sell cryptoassets (HM Revenue & Customs, GOV.UK)