A borrower wants to use cryptocurrency that has been converted to cash as part of their down payment. The conversion occurred 90 days ago. What is the most likely underwriting requirement?
Correct Answer
B) Documentation of the cryptocurrency sale and tax implications
Cryptocurrency sales require documentation including transaction records, proof of sale, and consideration of tax implications. Since crypto gains may be subject to capital gains taxes, underwriters need to ensure the borrower has adequate funds after tax obligations and that the source is legitimate.
Why This Is the Correct Answer
Cryptocurrency sales require documentation including transaction records, proof of sale, and consideration of tax implications. Since crypto gains may be subject to capital gains taxes, underwriters need to ensure the borrower has adequate funds after tax obligations and that the source is legitimate.
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