On January 3, 2018, the Seattle Times published an article on a 23 year old who bought a house recently with cryptocurrency. Although he’s not the first to make a major purchase using cryptocurrency, he’s believed to be the first in the Seattle area. His story also shows how this innovative form of currency is gradually gaining steam. More and more sellers are beginning to accept cryptocurrency as payment. And for those sellers who don’t directly accept cryptocurrency, the buyer can simply exchange their crypto coin for USD or another type of cash that is accepted by the seller.
Cary Kuo, in this case, exchanged his cryptocurrency assets for USD to make a downpayment on a house in Tukwila, Washington. He purchased the home for $415,000. Using bitcoin cash and several other cryptocurrencies, he secured a mortgage and made the 10% downpayment. In order to meet the lender’s requirements and pay the seller, he converted his cryptocurrency assets into USD. Cary Kuo won over four other offers on the house despite using crypto coin as indirect payment.
Cary Kuo started cryptocurrency trading in June with an initial investment of $4,500. He puts most of his spare income into trading cryptocurrencies. Because cryptocurrency isn’t recorded in the form of a traditional statement, Cary Kuo had to wait longer for approval from his mortgage lender. The mortgage lender had to look at the trail of his cryptocurrency to confirm its legitimacy. Cary Kuo also had to overcome the skepticism and confusion of the real estate brokers on both ends of the deal. The sellers were worried that cryptocurrency isn’t legitimate.
However, as the involved parties learned what cryptocurrency is and how it works, they became open to it as a form of payment. Allan Ponio, the seller’s broker, decided to keep an open mind and contacted Guild Mortgage to confirm they accepted bitcoin for securing a mortgage. Oleg Tkach, the branch manager, explained that it’s similar to cashing out 401ks, stocks, and other investments for a mortgage. Cryptocurrency is another instrument one can cash out on for a mortgage and other big purchases.