"He arranged the loan through LendSure Mortgage after multiple lenders declined to consider the borrower's crypto assets. The borrower lacked traditional income documentation but held significant cryptocurrency reserves. We did an upfront preapproval on this loan. This guy is buying an $8 million house, so typically, they would go up to like 70% or 75% LTV on this product. But we hit the max loan amount, where they capped us out at $4 million."
"[We] got him approved using that cryptocurrency as an income source, Hodgson said. Obviously, he's liquidating some of the cryptocurrency for the down payment, he added. But you know, for these crypto investors with substantial funds they could go buy the house [in] cash, but he'd rather leverage and borrow $4 million, and that's another $4 million that he can leave invested for more gains and also delay paying capital gains tax on all of it."
"Under the structure, the lender treated the borrower's crypto wallet as a source for asset depletion a common method in which net assets are divided over 60 or 120 months to calculate qualifying income. While most lenders require cryptocurrency to be liquidated and deposited into a bank account before counting toward income, Hodgson said that LendSure accepted proof of ownership from the borrower's private wallets."
UMortgage arranged a $4 million crypto asset-depletion loan through LendSure after multiple lenders declined to consider the borrower's cryptocurrency. The borrower wanted to buy an $8 million house but lacked traditional income documentation while holding substantial crypto reserves. The lender capped the loan at $4 million but accepted cryptocurrency as qualifying income under an asset-depletion approach that divides net assets over 60 or 120 months. The borrower liquidated some crypto for the down payment but retained leveraged funds to pursue gains and defer capital gains taxes. LendSure authenticated private-wallet ownership via Proof of Satoshi test transfers and relied on blockchain visibility for underwriting.
Read at www.housingwire.com
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