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  • Can I Buy a Home with Crypto?

    Friday, March 4, 2022   /   by Wendi Gladwin

    Can I Buy a Home with Crypto?

    Can you buy a home with cryptocurrency? The answer is yes! In fact, there is a home listed right now on the MLS where the seller prefers to be paid in crypto - the price is just $4M (US dollars). While there is only one listing right now on the MLS that specifies a preference for cryptocurrency, it is predicted to become more prevalent in the housing market. 

    Cryptocurrency, although around since 2009, is becoming a trend and is reaching every facet of life where money is involved. Many view it as an inevitable way of the future and more merchants are accepting it as payment for goods and services every day. Electronics, luxury watches, and luxury cars such as Lamborghini and Tesla can be purchased using cryptocurrency. It’s only a matter of time before something as big as a house can be purchased using crypto. KIDDING! The time is NOW! There are already Real Estate Brokerages that have done several real estate transactions using crypto in states like New York, Texas, and Florida. Could Utah soon be on the list of states that have traded real estate for crypto or NFT’s (non-fungible tokens)? It just might be! With a new listing on the market hoping to close with the exchange of NFT (a subset of the crypto culture – the main difference being one is currency and one is not), Utah could quickly jump on that list.

    Advantages of purchasing a home using crypto:

    • If you have made a profit from investing in bitcoin, buying property using the currency is a great way to consolidate your profits.
    • Investing in property gives you a chance to diversify your assets.

    • Real estate transactions favor cash buyers, and using bitcoin is like being a cash buyer, which can give you more negotiating power (in theory, however, due to the uncertainty around cryptocurrency, may not play out that way in a multiple offer situation).

    There are also some disadvantages to buying a home with crypto, including:
    • Even fewer homes to buy. One of the biggest drawbacks of purchasing a property using bitcoin is the lack of sellers. There is limited availability of properties being sold for crypto, and you may have a hard time finding properties in your desired location.
    • Lending regulations: The guidelines required to get a mortgage may not allow for crypto if you have to get a mortgage to purchase the home.
    • Banks are hesitant to accept non-traditional currency, partly because of the associations with money laundering, crime, and the instability of non-traditional currency. 
    *As always, you will need to enlist the help of a tax expert, as making real estate transactions can be pretty complex in terms of taxes.

    While there are few homes available for offering in cryptocurrency, it certainly is something to think about and experts suggest it may become more common here in Utah, especially as we are better known as a hub for tech (Silicon Slopes).

    FAQ about buying a home with Cryptocurrency:


    Can I use crypto for my down payment? 

    We talked with Travis Carter at First Colony Mortgage and he has completed a loan, where the buyer was able to cash in Bitcoin for their down payment, however, sometimes this is not possible. It all depends on how the cryptocurrency servicer issues statements. When you're dealing with federal regulations on lending, it's important to ask your lender first before you make any decisions.


    Is ownership transferred the same way when I pay with crypto?

    The answer is yes, since the funding of the purchase is complete prior to transfer of title. 


    Can I get my mortgage in crypto? 

    Lending in cryptocurrency is a hot topic right now, but as of this moment, getting lending in crypto is not an option. We’ll see what the future brings. 


    Can I pay my mortgage in crypto? 

    There is one mortgage servicer accepting crypto for payment, but you can use crypto in any form to make your payment to any mortgage company, as long as it is converted to US Dollars prior to payment. 


    Would you consider buying a home in cryptocurrency?

    A cryptocurrency, crypto-currency, or crypto is a digital currency designed to work as a medium of exchange through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.