Alex Shekhtman New Ways to Use Crypto Assets
As cryptocurrency becomes more mainstream, homebuyers are looking for ways to use digital assets like Bitcoin in the mortgage process. With recent updates from U.S. housing authorities, Bitcoin is starting to be recognized as a legitimate financial reserve when applying for a home loan. This opens new opportunities—especially for investors and self-employed individuals—to secure financing without liquidating their crypto holdings.
At LBC Mortgage, we stay ahead of evolving regulations and lender policies. We help clients make the most of their Bitcoin when applying for a mortgage, while avoiding common mistakes and delays.
Why Bitcoin is Now a Viable Asset in Mortgage Lending
For years, lenders ignored cryptocurrency due to volatility and unclear regulations. But the landscape is changing. In June 2025, the Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to draft policies that recognize Bitcoin held in U.S.-regulated exchanges as eligible reserves. This means you can now use Bitcoin to demonstrate financial stability—without having to sell and convert it to U.S. dollars first.
Using Bitcoin as an asset can:
- Strengthen your application by increasing available reserves
- Help you qualify for better loan terms
- Avoid triggering capital gains taxes from selling your crypto
- Keep your long-term investments intact while still buying a home
Still, it’s important to understand how lenders view crypto assets. Bitcoin isn’t treated the same as cash in a bank account. Lenders typically apply discounts to the value of crypto, and each one may have different requirements. That’s where our guidance at LBC Mortgage becomes critical.
How to Include Bitcoin in Your Mortgage Application
Keep Your Bitcoin in a U.S.-Regulated Exchange
To count Bitcoin as part of your mortgage reserves, it must be held on a regulated U.S. exchange or in a custody solution that meets strict documentation and security standards. Wallets without a verified identity or those located overseas won’t qualify. Exchanges like Coinbase or Gemini are commonly accepted by lenders due to their licensing and compliance structures.
LBC Mortgage will review your exchange and help determine if your holdings meet the latest FHFA and lender requirements.
Gather Detailed Documentation
Lenders require a clear paper trail to verify your Bitcoin holdings. This includes:
- Exchange statements showing balances over the past 60–90 days
- Purchase history or blockchain transaction records
- Proof of account ownership (name and ID match)
- Link between your crypto wallet and bank account
This documentation helps underwriters verify your assets, understand your financial behavior, and reduce perceived risk. We assist clients in preparing all required documents upfront to avoid unnecessary back-and-forth with lenders.
Expect Adjusted Valuations for Volatility
Bitcoin is a volatile asset. Its price can fluctuate significantly in short periods. Because of this, lenders typically apply a “haircut” to the total value. For example, if you hold $100,000 in Bitcoin, a lender might only credit $70,000–$80,000 as eligible reserves.
Some lenders also require your Bitcoin balance to remain stable or above a certain threshold during the approval process. If the value dips too far, they may ask for additional reserves. At LBC Mortgage, we help you plan for these fluctuations and identify how much of your crypto should be applied in your loan file.
Use Bitcoin to Satisfy Reserve or Down Payment Requirements
While you can’t usually use Bitcoin directly for a down payment, it can still strengthen your overall profile. Many mortgage programs require proof that you can cover several months of mortgage payments in case of emergency. If you fall short in cash reserves, Bitcoin holdings may cover the gap.
For example, if your lender requires six months of reserves and you only have four months’ worth in a savings account, you can use Bitcoin to account for the remaining two months—if properly documented and held in an accepted platform.
LBC Mortgage knows which lenders are currently open to this type of reserve strategy. We help you use your assets efficiently while complying with all underwriting guidelines.
Work with a Broker Who Understands Crypto
Navigating Bitcoin in a mortgage file isn’t easy. Many lenders still don’t know how to review crypto assets properly. That’s why working with an experienced broker matters. We’ve helped clients across California and beyond use their Bitcoin holdings in successful home purchases—without delays or confusion.
Our team understands both the technical side of cryptocurrency and the underwriting standards of lenders. We ensure your assets are presented in a way that meets lender criteria and builds trust in your financial position.
Benefits of Using Bitcoin in Your Application
Avoid Selling and Preserve Growth Potential
When you sell Bitcoin to use as a down payment or for reserves, you lose exposure to future price increases. By using Bitcoin as a qualifying asset without selling, you preserve your position and potentially benefit from long-term growth.
This is especially important if you view Bitcoin as a core part of your investment strategy. LBC Mortgage helps you maintain your financial goals while accessing the mortgage you need.
Eliminate Capital Gains Tax from Liquidation
Selling Bitcoin can trigger significant capital gains taxes, especially if your assets have appreciated in value. By using your crypto as an asset instead of cashing out, you avoid triggering taxable events. This can save thousands of dollars and keep more of your net worth available for homeownership.
Better Options for Self-Employed or Non-Traditional Borrowers
Many entrepreneurs and freelancers rely on alternative income sources and non-traditional assets. If you don’t have a steady W-2 paycheck, lenders may place more weight on your reserves. Bitcoin can show financial strength—even if your income doesn’t follow a typical path.
We work with self-employed clients all the time. Our team knows how to structure your loan file to highlight assets like Bitcoin in the most favorable way.
Potential for Faster Review by Crypto-Savvy Lenders
Not all lenders are behind the curve. Some already understand how to review crypto assets and move applications faster when the paperwork is solid. These lenders value clear digital asset records and may offer streamlined approvals when your documentation checks out.
We maintain relationships with lenders that are open to crypto-backed reserves and know how to guide your file to the right partner.
Why LBC Mortgage Is the Best Partner for Crypto-Based Mortgages
LBC Mortgage is uniquely positioned to help clients use Bitcoin in the mortgage process. We understand digital assets and how they fit into traditional lending frameworks. Our team works with lenders who accept crypto reserves and structures applications that succeed in today’s market.
We don’t just submit forms—we guide you step by step. From preparing your Bitcoin documentation to matching you with the right loan program, we make the process smooth, fast, and secure. Our experience with crypto clients sets us apart, and we’re here to help you use every advantage available.
