Conventional and VA Updates
Cryptocurrency as Eligible Assets (Conventional Loans)
Effective immediately, Cryptocurrency aka Bitcoin, Litecoin, digital assets, and other cryptocurrencies are eligible for down payment, reserves, and/or closing costs with proof of liquidation subject to the following documentation requirements:
- The 2 most recent cryptocurrency exchange statements documenting a history of transactions (including the conversion of funds to US dollars) must be obtained.
- Satisfactory documentation evidencing the borrower is the cryptocurrency account holder must be obtained.
- Funds liquidated from cryptocurrencies must be deposited into a U.S. financial institution account.
- Borrower must provide a written explanation on the original source of funds used to purchase the cryptocurrency.
Certificate of Eligibility (VA IRRRLs)
VA announced via Circular 26-21-11 of new enhancements made in VA’s WEBLGY system will provide more accurate funding fee exemption when a new case number is requested on an Interest Rate Reduction Refinance Loan (IRRRL); therefore, effective immediately, a Certificate of Eligibility (COE)is no longer required on Interest Rate Reduction Refinance Loans (IRRRL).
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