Bitcoin, Ethereum and other crypto currencies are all the rage and more and more homebuyers are interested in leveraging their crypto assets to purchase real estate. Momentum is rising to make virtual money a legitimate means of exchange for homes.
But can it be used directly to purchase real estate? Not yet in Illinois, but there is a solution.
For now in Illinois, real estate buyers looking to use crypto for their purchase will need to cash out their investments to put toward their down payment. Just like regular investments, any proceeds from the withdrawal may be taxed as capital gains.
Buyers will need a minimum of two months of statements from the crypto wallet or bank statements showing the crypto came from funds the buyer owns. Any large deposits will also need to be sourced.
Blockchain-based transactions hold promise and a number of companies are vying to create a role for cryptocurrency and blockchain in real estate. While it is technically possible to buy a home with cryptocurrency in the near future, for now, most real estate transactions are still done the old-fashioned way.
If your buyers are looking to use crypto currency for their home purchase or to use as a down payment, reach out to your Key Mortgage loan officer to help walk them through the process.