Attestation Letter for Crypto Mortgage Applications

As cryptocurrencies become a more accepted part of personal finance, more homebuyers are seeking to use their digital assets to qualify for mortgages. One of the most important documents you may need in this process is an attestation letter. This article provides a comprehensive overview of what an attestation letter is, why it matters for crypto mortgage applications, who can provide one, and how to ensure your letter meets lender requirements.

What is an Attestation Letter?

An attestation letter is a formal document, typically prepared by a Certified Public Accountant (CPA) or other qualified financial professional, that verifies the existence, ownership, and value of your crypto assets. For mortgage applications, this letter serves as third-party confirmation that you hold the assets you claim, and that they meet the standards required by your lender and regulatory agencies such as the FHFA.

Key Elements of an Attestation Letter

• Verification of Ownership: The letter should clearly state that you are the legal owner of the specified crypto assets.
• Confirmation of Value: The document should include the current value of your holdings, often based on recent account statements or market prices at a specific date.
• Holding Period: Lenders may require confirmation that you have held the assets for a minimum period (e.g., 60 or 90 days) to ensure stability and reduce the risk of last-minute transfers.
• Source of Assets: Some lenders may ask the attester to comment on the origin of the assets, especially if large deposits or transfers are involved.
• Professional Credentials: The letter must be signed and dated by a licensed CPA or financial advisor, including their contact information and professional license number.

Why Do Lenders Require an Attestation Letter for Crypto?

Unlike traditional bank accounts, crypto wallets and exchanges are not always subject to the same regulatory oversight or reporting standards. This can make it difficult for lenders to verify the legitimacy and stability of your digital assets. An attestation letter from a trusted third party bridges this gap, providing:

• Independent Verification: Lenders rely on the expertise and reputation of CPAs and financial professionals to confirm the accuracy of your asset claims.
• Regulatory Compliance: Attestation letters help lenders meet FHFA and anti-money laundering (AML) requirements by documenting the source and legitimacy of your funds.
• Streamlined Underwriting: A clear, well-prepared letter can speed up the approval process by reducing the need for additional documentation or follow-up questions.

How to Obtain an Attestation Letter

Obtaining an attestation letter for your crypto assets involves several key steps:

1. Choose a Qualified Professional

Select a CPA or financial advisor who is familiar with cryptocurrency and has experience preparing documentation for mortgage or financial applications. Not all professionals are comfortable with digital assets, so look for someone with relevant credentials and a good understanding of current regulations.

2. Gather Your Documentation

Be prepared to provide detailed records of your crypto holdings, including:

• Account statements from exchanges or wallets
• Transaction histories showing deposits, withdrawals, and transfers
• Proof of purchase or acquisition
• Any prior attestation or audit reports

Organize these documents by date and asset type to make the review process easier for your CPA.

3. Request a Letter That Meets Lender Requirements

Contact your lender to ask about their specific requirements for attestation letters. Some may have templates or preferred formats. Share these guidelines with your CPA to ensure the letter addresses all necessary points, such as asset value, ownership, and holding period.

4. Review and Submit the Letter

Once your CPA prepares the letter, review it carefully to ensure all information is accurate and complete. Submit the attestation letter along with your other mortgage documentation. Keep a copy for your records in case the lender requests clarification or additional details.

Tips for a Successful Attestation Letter

• Be Proactive: Start the process early to avoid delays in your mortgage application.
• Be Thorough: Provide your CPA with all relevant documentation and be transparent about your holdings.
• Be Clear: Ensure the letter is easy to read, well-organized, and addresses all lender requirements.
• Stay Updated: If your asset values change significantly before closing, you may need to provide an updated letter.
• Communicate: Keep an open line of communication with both your CPA and your lender to address any questions promptly.

Common Questions About Attestation Letters

Q: Can I write my own attestation letter? A: No. Lenders require attestation letters to be prepared and signed by a qualified, independent professional such as a CPA or licensed financial advisor.

Q: What if my CPA is unfamiliar with crypto? A: Look for a professional with experience in digital assets or ask your lender for recommendations. Some firms specialize in crypto accounting and can provide the necessary documentation.

Q: How recent does the attestation letter need to be? A: Most lenders require the letter to be dated within 30-60 days of your application. Check with your lender for their specific policy.

The Bottom Line

An attestation letter is a powerful tool for verifying your crypto assets and strengthening your mortgage application. By working with a qualified professional, maintaining thorough records, and ensuring your letter meets all lender requirements, you can streamline the approval process and move one step closer to homeownership. As the use of crypto in real estate continues to grow, being prepared with the right documentation will help you stay ahead in a competitive market.