The Quick Read: Rarely directly: neither asset-based path in Lendmire’s network lists crypto as an eligible asset, so the documented route is to sell it, move the cash into a regulated account, and let that balance season before it counts. A handful of lenders elsewhere in the market do accept crypto under strict custody rules, but those are exceptions, not a standard.
- Crypto is not published as eligible on the asset qualifier path or the asset depletion path.
- Converted cash counts at 100% once it is seasoned and the source is documented, subject to underwriting.
- Plan the sale and the seasoning window before you sign a purchase contract.
- Crypto-backed loans are a different product with different risks.
- For investors using a DSCR loan, crypto’s most common role is reserves, not income.
What Is an Asset Qualifier Mortgage, and How Does It Differ from Asset Depletion?
Both programs let you qualify on what you own instead of what you earn. They work differently, and you are qualified on one path at a time.
The asset qualifier path looks at assets alone. Your eligible assets, after the credit percentages, must equal or exceed the entire loan amount. No employment or income is documented. Through select programs, leverage runs up to 80% on a purchase and 75% on a refinance of a principal residence or second home, with loans up to $4,000,000. The credit floor is 600, subject to underwriting.
The asset depletion path turns assets into income. The lender takes your usable assets, divides by 60 months, and treats the result as monthly qualifying income. That income must then carry the housing payment and your other debts through the debt-to-income test. On a principal residence or second home, leverage typically runs up to 80% on a purchase or rate-and-term refinance and 60% on a cash-out. On an investment property, it is 65% on a purchase or rate-and-term refinance and 60% on a cash-out. Loans range from $125,000 to $3,500,000.
Don’t mix up the two. The assets are fully documented on both. “No income documentation” never means “no documentation.”
Key Terms Defined
Asset qualifier: a mortgage approved on eligible assets that cover the whole loan, with no income documented.
Asset depletion: a method that divides usable assets by a set number of months to create qualifying monthly income.
Haircut: the share of an asset’s value a lender refuses to count, usually because the balance can swing in value.
Seasoning: the period funds must sit in your account, with statements, so the lender can see where they came from.
Crypto-backed loan: a loan that pledges your crypto as collateral. It is not an asset-based mortgage.
Reserves: money left over after closing that shows you can keep paying if something goes wrong.
Why Crypto Gets Different Treatment
Crypto runs into three problems that cash and brokerage accounts do not: verification, volatility, and custody.
Verification is the real bottleneck. A statement proves a balance. It does not always prove you own the account or where the money came from. RealOpen makes the same point in its explainer on asset depletion with crypto: the lender has to verify what exists before it can discount and divide.
Volatility is the second problem. A balance that falls sharply between application and closing shrinks the cushion the lender relied on. Brokerage and cash balances move less, so they get cleaner treatment.
Custody is the third. A balance on a regulated exchange leaves a paper trail. A balance in a private wallet leaves almost none.
Why do lenders disagree, then? Across the wholesale network, we see three approaches. Some programs exclude crypto entirely. Some accept a narrow list held at regulated custodians. A few accept more, but they carry their own overlays and often sit in niche products. The split comes down to how much verification risk each lender and its investors will take on. Neither side is wrong. They are pricing the same risk differently.
Scotsman Guide reports that one non-QM lender limits approved crypto to widely adopted assets: bitcoin, ethereum, ETFs backed by them, and U.S. dollar-backed stablecoins. It also requires custody at U.S.-regulated exchanges and platforms, or at federally regulated brokerages and nationally chartered banks. That is one lender’s list. It is not a market standard, and it is not a network program.
The Convert-and-Season Route, Step by Step
This is the route we document most often for crypto-heavy borrowers. Every figure below belongs to select programs in the network, subject to underwriting.
1. Pick the path. If your eligible assets will cover the whole loan, the qualifier path fits. If you want assets to become income, the depletion path fits.
2. Sell the crypto on a regulated platform. Move the proceeds into a bank or brokerage account in your own name.
3. Let the cash season. On the qualifier path, funds need 60 days of seasoning and two months of statements for each qualifying account. On the depletion path, the lender wants statements at least 120 days old at application, plus the most recent statement within 45 days.
4. Document the source. Keep the exchange records showing the sale and the transfer. The lender reviews that trail.
5. Apply the credit percentages. Cash counts at 100% on both paths. Cryptocurrency never counts at a percentage of its own.
6. Run the path’s test. The qualifier path compares usable assets to the loan. The depletion path divides by 60 months and runs the result through debt-to-income.
If you are weighing whether a sale is even required, Lendmire’s piece Do You Have to Liquidate Assets to Reserve an Asset Qualifier Mortgage? covers the related question for reserves.
Here is how it looks on paper. These are illustrative figures, and the lender’s own calculation governs.
| Path | Assets | Counted at | Usable |
|---|---|---|---|
| Qualifier | $330,000 brokerage | 100% | $330,000 |
| Qualifier | $300,000 401(k), under 59½ | 90% | $270,000 |
| Qualifier | $200,000 savings (from sold crypto, seasoned) | 100% | $200,000 |
That totals $800,000 of usable assets against an $800,000 loan, so the borrower is reviewed on assets alone, subject to underwriting. The savings line is the converted crypto. It only counts because it sat in a regulated account with statements.
Now the depletion path. Say you hold $1,500,000 in securities, counted at 80% for $1,200,000. Add $300,000 in cash from a crypto sale, counted at 100%. Usable assets are $1,500,000. Divide by 60 months and you get $25,000 of monthly qualifying income. That income then has to carry the housing payment and other debts through the debt-to-income test.
For context, market surveys report that non-QM programs commonly spread assets over 60 to 84 months, per RealOpen. The network figure here is 60 months.
One more point on double-counting. Assets that generate your qualifying income generally cannot also serve as reserves or fund your down payment. Funds you use at closing typically come out of the pool first. Build the plan with that subtraction in mind.
Three Ways Crypto Can Appear in a Mortgage File
People say “crypto mortgage” and mean three different things. The table separates them.
| Path | What the lender sees | Your holdings | Fit |
|---|---|---|---|
| Convert and season | Seasoned cash, documented source | Sold | Asset-based programs in the network |
| Counted directly | Crypto at a custodian, discounted | Held | Narrow, lender-specific products |
| Crypto-backed loan | Pledged collateral | Locked, can be liquidated | Borrowers who want to keep the crypto |
The first row is the documented route in the network. The second exists at a few lenders elsewhere. We do not publish it as available on either path.
A crypto-backed loan is not an asset-based mortgage at all. Your coins serve as collateral, which brings margin calls and forced-liquidation risk if prices drop. Asset depletion and the qualifier path do not pledge your crypto. They also still need a cash down payment with a paper trail.
Edge Cases That Trip People Up
Cold wallets and private wallets. Verification is hard, but not always impossible. HousingWire described one non-QM file where the borrower held crypto in off-exchange wallets and did not have to move it to an exchange. That was one broker’s account of an exception. Most programs will not do it, and none in this network publishes it.
Stablecoins, ETFs and staking. A crypto ETF held in a brokerage account is a securities holding in form, but programs treat that line by line. Staked or locked positions and wrapped tokens are harder still. Assume nothing counts until the lender confirms it in writing.
Business-held crypto. Business accounts count only for the borrower’s ownership share, and crypto is not on the published list either way.
Borrowed or pledged funds. These never count as qualifying assets. Cash-out proceeds from the loan itself also do not count on the depletion path.
Joint and co-borrower holdings. Statements must show whose name is on the account. Plan on documenting each owner.
What About Reserves, Down Payment, and DSCR Loans?
Crypto can play three roles: qualifying assets, reserves, and down payment. Each is a separate question, and a yes on one is not a yes on the others.
For down payment, expect a cash paper trail. Selling the crypto early and keeping the statements is the cleanest way to show it.
For investors, the picture changes. A DSCR loan is reviewed primarily on property-level rental income covering the payment, subject to lender guidelines. It is not an asset qualifier. DSCR loans are designed for non-owner-occupied investment properties, and because they are business-purpose investor loans, they are reviewed differently from a standard owner-occupied mortgage. In the complete DSCR loans guide, you can see how the property’s income does the heavy lifting.
That makes crypto’s most common role for a DSCR investor reserves. The market is split. One lender first allowed crypto as reserves on DSCR investor loans because that credit box is more flexible. Many mainstream DSCR lenders still do not accept it. If crypto is your main liquid asset, your lender choices narrow. Ask early.
The asset-based programs on this page are consumer mortgages. On the asset qualifier path, they cover principal residences and second homes. Investment property is available only on the asset depletion path, at the lower leverage noted above.
What the Federal Directive on Crypto Reserves Does and Doesn’t Change
Federal housing regulators directed the agencies behind conventional loans to prepare proposals for counting crypto as a reserve asset without converting it to dollars. Consumer Finance Monitor covers the directive. It limits eligible crypto to assets evidenced and stored on a U.S.-regulated centralized exchange. It also tells each agency to consider risk mitigants, such as adjustments for market volatility. Crypto Briefing offers a secondary report on the same order.
Here is what matters for you. It is a directive about reserves in agency products. It does not govern asset qualifier loans, asset depletion loans, or DSCR loans. Non-QM lenders set their own rules. Reports also differ on how far implementation has gone, so treat any claim of finalized agency guidelines with caution.
Should You Sell, Hold, or Use Another Structure?
Honest answer: it depends on how much you need the loan and how much the sale costs you.
- Sell and season if the loan matters more than the position. This is the documented route, and it gives the cleanest file.
- Hold and look elsewhere if you want to keep the crypto. You may be steered toward a crypto-backed loan, a lender that accepts it directly, or other assets in your portfolio.
- Skip this product if you need an agency loan, or your wealth sits in unverifiable or ineligible holdings.
Taxes belong in the decision. Selling crypto may create a tax consequence, so tax treatment varies; consult a qualified professional before you sell.
Prices can swing before closing, so haircuts and seasoning rules favor planning ahead. Three to six months before you apply, start the checklist:
- Consolidate holdings at one regulated platform in your own name.
- Decide how much to sell, and keep every transaction record.
- Move proceeds to a bank or brokerage account and let them sit.
- Pull statements on schedule for the qualifier path’s two months or the depletion path’s 120-day and 45-day windows.
- Ask your tax professional about timing before the sale.
Depletion borrowers should also check the minimums. Qualified assets must be at least the lesser of $1,000,000 or 1.25 times the loan balance. They must never fall below $250,000 liquid when depletion is the only income source. For a deeper look at what the lender counts, see Lendmire’s explainer How Lenders Count Assets Toward an Asset Depletion Mortgage.
Frequently Asked Questions
Can I use crypto for the down payment?
Yes, after you convert it. The down payment needs a cash paper trail, so sell on a regulated platform, move the proceeds into a bank account in your name, and keep the records. Pledging crypto as collateral is a different product.
Do I have to sell my crypto?
In the network’s asset-based programs, generally yes. Neither the qualifier path nor the depletion path publishes crypto as eligible, so the documented route is converting it to a seasoned cash balance in a regulated account. A few lenders elsewhere take crypto directly, with narrow custody rules. Selling may create a tax consequence, so consult a qualified professional.
Does crypto count for reserves?
It depends on the lender and the product. Some DSCR lenders allow it as reserves. Many mainstream DSCR lenders do not. On the asset qualifier path, no reserves are required at or below 75% loan-to-value, and above that the lender sets them. Crypto is not published as an eligible asset.
Is an asset qualifier mortgage the same as a crypto-backed loan?
No. An asset qualifier mortgage approves you on eligible assets that cover the loan. A crypto-backed loan pledges your coins as collateral and carries forced-liquidation risk if prices fall. They solve different problems.
Can I buy a house with crypto directly?
Not through these programs. You sell the crypto, season the cash, and use the dollars. The lender reviews the source, and every file is underwritten individually, subject to lender guidelines.
Next Steps
If you are qualifying on assets rather than income and want to see how the numbers work, Lendmire can help you compare asset-based mortgage options based on your statements, the property, credit profile, leverage, and your goals. Consumer mortgage lending is licensed in 16 states, including Alabama, California, Colorado, Florida, Georgia, Indiana, Michigan, Montana, New Mexico, North Carolina, Ohio, Pennsylvania, Tennessee, Texas, Virginia, and Washington. Lendmire acts as the broker, placing files through select lenders in its network. It is not a commitment to lend.
Crypto holders will keep pushing lenders to define their rules, but until a program publishes them, a seasoned cash balance is generally an easier version of your wealth for an underwriter to read.
About Lendmire
Lendmire is a mortgage brokerage (NMLS# 2371349) licensed for consumer mortgage lending in 16 states, arranging bank statement and other alternative-documentation mortgages — P&L-only, 1099-only and asset-based paths — through a wholesale lending network. Eligibility is determined by the lender on each file. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
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References
1. RealOpen
3. HousingWire
This article is part of Lendmire’s asset-based mortgage program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: How Lenders Count Assets Toward an Asset Depletion Mortgage · Asset Qualifier Mortgage vs Bank Statement Mortgage · How Lenders Decide Which Sale Proceeds Count Toward Asset Depletion
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.