How to Buy a Home Using Crypto or Stock Proceeds As a Down Payment

Buying a home today requires planning ahead—especially if your wealth doesn’t sit neatly in a checking account. Since 2020, we've seen many asset classes inflate to all time highs and with crypto and the stock market at or near all time highs, more buyers today are selling a portion of their crypto or stock portfolios to turn them into down payments. And while it’s absolutely possible, it requires careful planning. The biggest hurdle? Seasoning.

Lenders don’t just want to know you have the money—they want to know where it came from, how long it’s been in your account, and whether you can prove the paper trail. For buyers using cryptocurrency, recent investment sales, or other large transfers, understanding seasoning rules can make or break your mortgage approval.

This guide breaks down how seasoning works for down payments across conventional, jumbo, and non-QM loans (including crypto-backed mortgages), what documentation you’ll need, and how to avoid costly last-minute denials.

What Is Seasoning?

In mortgage terms, seasoning refers to how long funds have been sitting in your account. Lenders typically want to see that your down payment money has been in your possession for at least 60 days before closing. Two full bank statements with no unexplained large deposits make underwriters happy.

The logic is simple: if your down payment just showed up yesterday, they can’t be sure it’s really yours. Maybe it’s borrowed, a loan from a friend, or even proceeds from an unverified crypto sale. But when the money has been sitting untouched for a couple of months, the lender sees it as stable and legitimate.

Unseasoned funds aren’t automatically disqualified—but they trigger scrutiny. You’ll need to provide clear documentation showing where the funds came from, when, and why. The more unconventional the source, the more detailed the proof needs to be.

Why Seasoning Matters for Stock Sales and Other Asset Liquidations

Stock sales can be easier to document. If you sell stock from a regulated brokerage like Fidelity, Schwab, or E*TRADE—say, Apple or Microsoft shares—the funds are already sitting in a verified account. Once liquidated to cash, those proceeds are usually accepted immediately because they’re traceable through standard brokerage statements. There’s typically no need to season those funds for two months before using them toward your down payment.

By contrast, selling an illiquid asset such as a baseball card collection, artwork, or jewelry can be more complicated. Because these items aren’t held in a regulated account, lenders treat the proceeds as new, unverified funds. You’ll need to provide proof of sale, appraisals, and bank deposit records—and then let the cash season for at least 60 days before applying it toward your mortgage.

Why Seasoning Matters for Crypto Sales

Crypto investors face an extra layer of complexity. If you sell from an exchange like Coinbase or, especially, from cold storage, the transaction history can look opaque to a traditional bank. A lender wants a verifiable path: where the crypto came from, when it was sold, and that the sale proceeds truly belong to you.

If you plan to liquidate crypto for your down payment, you need to:

• Move coins from cold storage to a regulated exchange like Coinbase.

• Execute the sale to USD.

• Transfer the proceeds to a bank account in your name.

• Let those funds sit for 60 days before applying them toward your mortgage.

Failing to do that can derail your approval. One of our recent clients in California sold Bitcoin from cold storage just three weeks before closing. His conventional lender flagged the deposit as unverified, froze the loan, and ultimately denied the file. We stepped in with a crypto mortgage program that accepted his funds without a seasoning requirement and closed in under a month—but it was a reminder that timing matters.

Conventional Loan Seasoning Rules

Conventional loans (Fannie Mae and Freddie Mac) have the strictest seasoning standards. Any deposit larger than 50% of your monthly income must be sourced and seasoned. Funds from crypto or investment sales must be:

1. Fully liquidated into U.S. dollars.

2. Deposited into a U.S. bank in your name.

3. Seasoned for at least 60 days.

You’ll need to document the sale with exchange records or brokerage statements and show a clear chain of custody to your bank. Lenders won’t accept screenshots of wallet balances or unverifiable peer-to-peer transfers. If the sale is recent and the funds haven’t seasoned yet, the underwriter may reject them as usable for your down payment—even if you can prove ownership.

Jumbo Loan Seasoning Rules

Jumbo loans (above conforming limits) are even more conservative. Because the loan amounts are higher, the scrutiny is higher too. Most jumbo lenders require 60–90 days of seasoning and prefer the source to be traditional—salary savings, stock liquidation, or equity from another property.

If you’re using crypto or non-traditional assets for a jumbo down payment, assume you’ll need:

• Proof of liquidation.

• A paper trail showing transfer to your personal account.

• Two to three months of bank statements reflecting stable balances.

Large late-stage deposits are a red flag. Even legitimate proceeds can stall underwriting if they appear without documentation. The smart move is to convert and season early—long before you make an offer.

Non-QM and Crypto-Backed Mortgage Options

Non-QM loans (Non-Qualified Mortgages) are where flexibility begins. These are portfolio loans that allow unique asset types and alternative documentation. For crypto investors, they’re often the ideal fit.

LendFriend’s crypto mortgage program, for example, allows borrowers to use funds from cold storage wallets with no seasoning requirement. You can show proof of ownership and valuation through blockchain records or exchange verification, and we can qualify you immediately—no waiting 60 days.

Here’s how it worked for our California client: he had recently sold $400,000 of Bitcoin for a down payment. Traditional lenders refused to count the funds because they hadn’t seasoned. Through our crypto mortgage option, we documented the source, verified the asset trail, and closed the loan within three weeks. No cooling-off period, no stress.

Non-QM programs also include asset depletion loans—where your overall assets (crypto, stocks, cash, retirement) are used to calculate qualifying income. While that helps with loan approval, the key advantage for down payments is that funds don’t have to be aged the same way. As long as ownership is verified, these assets can usually be used right away.

How to Document Crypto and Other Asset Sales

To avoid delays, prepare your documentation before applying for your mortgage. Lenders will ask for:

• Proof of ownership: Wallet address or exchange account in your name.

• Transaction history: Blockchain record, exchange statement, or trade confirmation.

• Conversion record: Statement showing crypto-to-USD sale.

• Bank deposit verification: Screenshot or statement showing the USD transfer.

If you’re selling stocks, RSUs, or mutual funds, save trade confirmations and account statements too. The cleaner your paper trail, the easier underwriting becomes.

A Note on Asset Depletion (and When It Helps)

While seasoning applies primarily to down payment funds, it can also be critical for those looking to qualify for a mortgage using an asset depletion product. Asset Depletion Mortgages, or asset dissipation mortgages can help when you have strong reserves but low income. Lenders will calculate a simulated monthly income from your total asset base—stocks, retirement funds, or even crypto—so you can qualify for the mortgage payment itself. You don’t need to liquidate or season those assets for that purpose; they just need to be verifiable and stable.

It’s not a replacement for your down payment funds, but it can complement them. A well-structured asset depletion loan, with properly seasoned assets, helps buyers with substantial holdings but limited cash flow unlock financing without traditional employment income.

Final Thoughts: Plan Early, Close Smoothly

Seasoning rules aren’t there to make your life harder—they’re about transparency and stability. But if you don’t plan ahead, they can become major roadblocks. The key is to decide early how you’ll fund your down payment, especially if it involves crypto or large asset liquidations.

If you’re converting from crypto or investments, do it at least 60 days before applying for a conventional or jumbo loan. If you can’t wait, explore non-QM or crypto-backed options that skip seasoning altogether.

The sooner your lender sees clean, documented funds, the sooner your loan sails through underwriting. At LendFriend, we specialize in bridging that gap—helping modern buyers turn unconventional wealth into homeownership without the unnecessary friction.

Ready to put your assets to work for your dream home? Let’s make it happen. Give us a call at 512.881.5099 or reach out to us here. We’d love to be your partner in the process.