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Do Mortgage Companies Consider Bitcoin As Income?

With the increasing growth of bitcoin, more and more companies are accepting it as payment on everyday goods and services.

If bitcoin is one of your investments, or maybe your only investment, creating an income can be made easier. It may be worth checking out the Bitcoin Code Review.

What about a mortgage? Do mortgage companies consider bitcoin as income?

Short Answer

First off, as far as our research has indicated, the only acceptable form of payment on a mortgage with a United States mortgage company is U.S. dollars. So at the outset, the short answer seems to be “No, bitcoin is not considered income by mortgage companies.” But as you’ll see, things are not so cut-and-dry.

Now, a person could convert those bitcoins to U.S. dollars, and then use that money in the transaction. But with a mortgage, even this has one complication.

Plus, there seems to be mixed signals going on. The IRS has declared bitcoin as an asset. Yet, banks are still trying to wrap their minds around that. Any assets need to be documented and verified.

Banks are also picky about seeing funds verified in your bank account for at least six months.

The Bank’s View

While many companies are accepting bitcoins, most banks have not yet. There’s no telling how long it will take.

So if your bitcoins are worth enough to purchase a home, your best bet for the time being is to convert it to U.S. dollars and let it sit long enough to satisfy the bank or mortgage company.

However, in the event you have a bank that does accept cryptocurrency, then arranging your mortgage has just been made simpler. Just be sure to comply with the bank’s policy.

The Impact of Regulation

Bitcoin is going through some growing pains. Regulation is a work in progress. Keep in mind that some things might currently be allowed in large transactions like a mortgage. Regulation could change that. In other words, what’s working now may not work later. The federal government as well as the courts will no doubt have their say.

Whatever you do, if you’re trying to work with bitcoin in a mortgage, be cooperative and do things ethically.

The Impact of Value

In reality, you can’t really blame banks and mortgage companies for not accepting bitcoin. The main reason is its volatility. Here’s a hypothetical situation using a hypothetical value of $10,000.

So you want to use $20,000 of bitcoin for a down payment (two bitcoins). Then over the next week, it drops to $7500 per bitcoin, which it recently did in a short time. Your down payment just shrunk to $15,000. It could go up or down from there.

Can you understand why a bank might be wary of bitcoin?


The question of bitcoin use in large transactions could be debated for quite a while. With possible future gradual acceptance by banks, regulation factored in, and the fluctuating value of bitcoin, consensus is a work in progress.

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