Crypto 30 Day Average Balance for Mortgage Approval

As more lenders begin to accept cryptocurrency as part of the mortgage approval process, understanding how your crypto holdings are evaluated is essential. One of the most common methods used by lenders is the 30-day average balance. This approach helps smooth out the volatility inherent in digital assets and provides a more accurate picture of your financial stability. This article explains how the 30-day average is calculated, why it matters, and how to prepare your documentation to meet lender requirements.

How the 30-Day Average is Calculated

Lenders use the 30-day average balance to assess the value of your crypto assets over a recent period, rather than relying on a single day’s snapshot. Here’s how the calculation typically works:

1. Sum Daily Balances: Add up the closing balance of your crypto holdings for each day over the past 30 days. This can include balances from multiple wallets or exchange accounts, as long as you provide clear documentation.
2. Divide by 30: Take the total sum of daily balances and divide by 30 to get the average daily balance for the period.
3. Use Official Statements: Lenders usually require official exchange statements or account exports that show daily balances, timestamps, and account holder information.

Example Calculation

Suppose your daily closing balances for the past 30 days add up to $150,000. Divide by 30, and your 30-day average balance is $5,000. This is the figure your lender will use to assess your crypto assets for mortgage approval.

Why the 30-Day Average Matters

Cryptocurrency prices can fluctuate dramatically from day to day. By using a 30-day average, lenders:

• Reduce the Impact of Volatility: Smoothing out short-term price swings provides a more stable and reliable view of your assets.
• Assess Financial Stability: A consistent average balance demonstrates that you have maintained sufficient assets over time, rather than relying on a temporary spike in value.
• Meet Regulatory and Underwriting Standards: Many lenders and regulators require average balance calculations to ensure fair and consistent asset evaluation.

Documentation Tips for Borrowers

Proper documentation is key to having your crypto assets accepted in the mortgage process. Here’s how to prepare:

1. Export Daily Balance Reports

• Most major exchanges allow you to export daily balance reports or account statements. Look for options to download data in CSV or PDF format.
• Make sure reports include your name, account number, and clear timestamps for each day’s balance.

2. Organize Your Records

• Keep your daily balance reports organized by date and account. If you use multiple exchanges or wallets, provide a summary sheet that aggregates your balances.
• Highlight or annotate any large deposits, withdrawals, or transfers to help lenders understand your transaction history.

3. Work with a CPA or Financial Professional

• Some lenders may require third-party verification of your average balance. A CPA can review your records and provide an attestation letter or summary report.
• Professional verification can speed up the approval process and reduce the need for additional documentation.

4. Stay Up to Date

• Lenders may request the most recent 30-day period before your application. Be prepared to update your reports if your application is delayed.
• Regularly exporting and saving your daily balance data can help you respond quickly to lender requests.

Common Questions About the 30-Day Average Balance

Q: Can I use balances from multiple exchanges or wallets? A: Yes, as long as you provide clear documentation and aggregate the data accurately. Lenders may require you to show ownership and transaction history for each account.

Q: What if my balance fluctuates significantly during the 30 days? A: The average will smooth out short-term spikes or drops. If your balance drops below the required minimum for several days, it could lower your average and affect your eligibility.

Q: Do all lenders use a 30-day average? A: Not all, but it is a common standard. Some may use 60- or 90-day averages, or require additional documentation. Always check with your lender for their specific requirements.

The Bottom Line

Understanding how the 30-day average crypto balance is calculated can help you prepare for the mortgage approval process and avoid surprises. By keeping thorough records, working with professionals, and staying organized, you can demonstrate the stability of your crypto assets and improve your chances of mortgage approval. As the industry evolves, being proactive and informed will help you navigate the intersection of crypto and real estate with confidence.