Virtual Currency
Introduction to Virtual Currency in Mortgage
When you’re buying a home, you might think about using virtual currency, like Bitcoin or Ethereum, to help pay for some of the costs. Virtual currency is digital money that doesn’t have a physical form like coins or bills.
Using Virtual Currency for Home Purchase
You can use virtual currency to help pay for your down payment, the costs involved in closing the deal on your home, and to show you have extra money saved up (financial reserves). However, there are specific steps you need to follow:
1. First, you must convert your virtual currency into U.S. dollars.
2. The converted money must be placed in a bank or financial institution in the U.S. that is officially recognized and regulated.
3. It’s important to have records or documents showing that your virtual currency was exchanged into U.S. dollars.
4. Before your loan is finalized, the lender needs to check and confirm that the money, now in U.S. dollars, is ready to be used.
If you’re planning to use a large amount of money from your virtual currency for these costs, the lender will need detailed documentation. They need to make sure this money really came from your virtual currency account.
However, there’s one thing you should know: You can’t use virtual currency directly as a deposit (also called earnest money) when you make an offer on a house. Earnest money is a way to show you’re serious about buying the home. This rule means you have to convert your virtual currency to U.S. dollars first and use that for the deposit instead.
Recent Updates and Announcements
The rules about using virtual currency in the home buying process are quite new and might change. For the most recent information, there was an announcement named Announcement SEL-2022-04, issued on May 4, 2022. This announcement and others like it help keep everyone updated on how virtual currency can be used in buying a home.
Getting More Information
If you have more questions about using virtual currency or any other part of buying a home, there are resources available. Fannie Mae, a government-sponsored entity that helps make home buying easier, provides guidance and answers through their website. You can find detailed policy explanations and get help directly from the source.
Working with Fannie Mae
If you’re involved in the mortgage process or just getting started with your home buying journey, you can work with Fannie Mae in several ways. They offer a range of mortgage products and technology solutions to make the process smoother. For professionals in the mortgage industry, there’s a login area for customers, and new users can find out how to get started with Fannie Mae’s services.
Support and Resources
Fannie Mae offers customer service support and a variety of resources for both homebuyers and mortgage professionals. They have a Learning Center to educate about the home buying process, guide forms for necessary documentation, and news about the latest events and changes in mortgage practices.
Additional Fannie Mae Sites
For more information and resources, Fannie Mae has other websites you can visit. There’s a Marketing Center for mortgage professionals, a consumer website for homebuyers, and information about Fannie Mae’s Duty to Serve program, which aims to help in challenging housing markets. Another resource is HomePath, where you can find foreclosed homes that Fannie Mae is selling.
References
For more details, visit Virtual Currency of the Fannie Mae Selling Guide.