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Few people know that while you can’t directly hand over Bitcoin to buy a house, your cryptocurrency can still play a significant role in the home-buying process. Here’s a simple guide on how to use your Bitcoin to purchase a home.

1. Convert Bitcoin to U.S. Dollars

Mortgage lenders and sellers typically require payments in traditional currency. Therefore, you’ll need to convert your Bitcoin into U.S. dollars. This involves selling your Bitcoin through a reputable exchange and transferring the proceeds to your bank account.

2. Document the Conversion Process

It’s essential to keep detailed records of your Bitcoin transactions. Lenders will require documented evidence that your virtual currency has been exchanged into U.S. dollars and is held in a U.S. or state-regulated financial institution. Ensure the funds are verified in U.S. dollars before the loan closing. citeturn0search0

3. Understand Usage Restrictions

While converted Bitcoin funds can be used for down payments, closing costs, and financial reserves, they cannot be used for the earnest money deposit—the initial deposit made to secure a purchase agreement. Plan accordingly to have traditional funds available for this purpose. citeturn0search0

4. Verify Income Sources

Income received directly in virtual currency, such as Bitcoin, isn’t eligible to qualify for a mortgage loan. Lenders require income to be in a stable and predictable form, typically U.S. dollars. Therefore, if you’re paid in Bitcoin, you’ll need to convert it to U.S. dollars and document this process to use it as qualifying income. citeturn0search2

5. Consult with Professionals

Navigating the intersection of cryptocurrency and real estate can be complex. It’s advisable to work with mortgage brokers and real estate agents familiar with virtual currencies to ensure a smooth transaction.

In summary, while you can’t directly purchase a home with Bitcoin, converting your cryptocurrency into U.S. dollars and following proper documentation procedures allows you to use those funds in your home-buying journey.

For more personalized guidance on using Bitcoin in real estate transactions, visit www.yestodd.com.

Tariffs are a powerful economic tool used to regulate trade, but they can also have significant ripple effects on various financial sectors—including mortgage rates. Over the next 12 months, tariffs imposed on goods and materials may indirectly impact borrowing costs for homebuyers. Here’s how:

1. Inflationary Pressure May Push Mortgage Rates Higher
Tariffs on imported goods typically increase the cost of consumer products, leading to higher inflation. The Federal Reserve closely monitors inflation and may respond by adjusting interest rates. If inflation remains persistent, the Fed could raise rates to counteract rising prices, which would, in turn, push mortgage rates higher.

2. Economic Uncertainty Could Lead to Rate Volatility
Trade disputes and tariff changes create uncertainty in financial markets. Investors tend to shift their money into safer assets like U.S. Treasury bonds during uncertain times. If demand for bonds increases, yields may drop, which can put downward pressure on mortgage rates. However, if the market anticipates stronger inflation, rates may rise instead, leading to fluctuations.

3. Tariffs on Construction Materials May Raise Home Prices
If tariffs are imposed on essential building materials like lumber, steel, and aluminum, the cost of new home construction could rise. Higher home prices mean larger mortgage amounts for borrowers, which can reduce housing affordability. Additionally, lenders may adjust mortgage rates based on increased risks tied to inflated home values.

4. Federal Reserve Policy Response Will Be Key
The Federal Reserve plays a crucial role in setting monetary policy to balance economic growth and inflation. If tariffs slow economic growth, the Fed might lower interest rates, which could indirectly lead to lower mortgage rates. On the other hand, if inflation spikes due to tariffs, the Fed may take a more hawkish stance, keeping mortgage rates elevated.

5. Impact on Employment Could Influence Borrower Demand
Tariffs can lead to job losses in industries reliant on imported goods, which could weaken consumer confidence. If unemployment rises and economic growth slows, mortgage demand may decrease, potentially leading lenders to lower rates to attract borrowers. Conversely, if tariffs boost domestic manufacturing and job growth, mortgage rates may remain steady or rise slightly.

Final Thoughts
Tariffs influence mortgage rates through a combination of inflationary effects, economic uncertainty, and Federal Reserve policy. While it’s difficult to predict the exact trajectory, borrowers should stay informed about trade developments and be prepared for potential fluctuations in mortgage rates over the next year. If you’re considering buying a home or refinancing, it may be wise to monitor market trends and lock in a favorable rate when the opportunity arises.

When it comes to securing a mortgage, homebuyers face an important decision: Should they work directly with a bank or enlist the help of a mortgage broker? While banks have traditionally been the go-to option, mortgage brokers are gaining popularity for their unique ability to provide personalized service and access to a wider range of options. Here are the top five reasons to choose a mortgage broker over a bank:

1. Access to Multiple Lenders

Banks can only offer their own mortgage products, which significantly limits your choices. Mortgage brokers, on the other hand, work with multiple lenders, including banks, credit unions, and non-traditional lenders. This access gives you a wider array of options tailored to your financial situation and goals. A broker’s ability to shop around often results in more competitive rates and terms than a single bank can offer.

2. Personalized Service and Expert Guidance

Mortgage brokers act as your personal mortgage advisor, guiding you through the entire process. They take the time to understand your unique financial circumstances and long-term objectives, ensuring you receive a solution that aligns with your needs. Unlike a bank employee, who may be limited to promoting their institution’s products, a broker’s advice is unbiased and focused on finding the best deal for you.

3. Better Rates and Negotiation Power

Because mortgage brokers have relationships with multiple lenders, they can often secure rates lower than what you might find on your own. Brokers have the industry expertise and volume of business to negotiate effectively on your behalf. They can also identify opportunities for discounts, incentives, or specialized products that banks may not advertise to individual borrowers.

4. Time Savings and Simplified Process

Applying for a mortgage can be a time-consuming and complex task, especially when dealing with multiple lenders. A mortgage broker streamlines the process by handling the paperwork, submitting applications, and following up with lenders. Their expertise ensures that your application is completed accurately, reducing the likelihood of delays or errors.

5. Solutions for Complex Situations

If your financial situation is less than straightforward—such as being self-employed, having a lower credit score, or requiring a jumbo loan—a mortgage broker can be a game-changer. They are experienced in finding solutions for borrowers with unique circumstances, often identifying lenders who specialize in specific niches. This personalized approach can make the difference between securing a loan and being denied.

Final Thoughts

Choosing a mortgage broker over a bank offers undeniable advantages, from access to a broader range of options to personalized service and better rates. By working with a broker, you gain a trusted partner who is committed to finding the best possible solution for your home financing needs. Whether you’re a first-time homebuyer or an experienced investor, a mortgage broker can simplify the process and help you achieve your homeownership goals with confidence.

Key points include:

• Substantial Growth in Net Worth: From 2019 to 2022, the median household net worth for older millennials nearly doubled to $130,000, primarily driven by investments in real estate and the stock market. WSJ
• Homeownership and Retirement Savings: Increased homeownership rates and contributions to retirement accounts have been significant factors in this wealth accumulation. WSJ
• Perception of Wealth Fragility: Despite these gains, many millennials feel their financial success is precarious, often viewing their increased net worth as “phantom wealth” because it is tied up in assets like homes and retirement accounts, which are not easily accessible for daily expenses. WSJ
• Influence of Past Economic Crises: Experiences from the 2007-2009 recession and the COVID-19 pandemic have left millennials cautious, contributing to feelings of financial vulnerability despite apparent wealth. WSJ
• Prioritization of Experiences: Shaped by witnessing economic downturns, millennials often value experiences over material possessions, reflecting a desire to enjoy life amidst financial uncertainties. WSJ
• Wealth Inequality Within the Generation: There is a widening wealth gap among millennials, with disparities in homeownership and income levels leading to unequal financial stability within the cohort. WSJ

Overall, while millennials have made notable financial strides, concerns about the liquidity and stability of their assets contribute to a sense of cautious optimism regarding their economic futures.

February 3, 2025, President Donald Trump signed an executive order initiating the creation of a U.S. sovereign wealth fund (SWF) within the next year. move aligns the United States with over 90 countries that manage such funds, collectively overseeing more than $8 trillion in assets. (reuters.com)

While specific investment strategies for the U.S. SWF remain under development, sovereign wealth funds globally often allocate resources to various asset classes, including real estate. For instance, Norway’s Government Pension Fund Global, the world’s largest SWF with $1.7 trillion in assets, has significant investments in real estate. ([businessinsider.c(https://www.businessinsider.comrump-new-sovereign-wealth-fund-could-buy-tiktok-2025-2?utm_source=chatgpt.com))

If the U.S. SWF adopts a similar approach, its entry into the real estate market could have several implications:

1. Increase Capital Flow: The fund’s investments could inject substantial capital into both commercial and residential real estate sectors, potentially driving up property values targeted areas.
2. Development Initiatives: By financing large-scale development projects, the SWF could stimulate urban renewal and infrastructure improvements, leading to job creation and enhanced community services.
3. Market Stabilization: Strategic investments during economic downturns could help stabilize property markets, mitigating the effects of recessions on the real estate sector.
4. Competitive Dynamics: The fund’s significant financial power might intensify competition for prime real estate assets, potentially sidelining smaller investors and influencing market dynamics.

However, the SWF’s impact will largely depend on its governance structure, investment objectives, and the specific assets it targets. Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick have been tasked with formulating a detailed plan for the fund within 90 days, which will provide more clarity on its prospective role in the real estate market. (reuters.com)

As the SWF’s framework develops, stakeholders in the real estate industry should monitor these plans closely to understand and prepare for the potential opportunities and challenges that may arise from the fund’s activities.