When do you actually have to sell your crypto before buying a house?

On the path most loan officers describe, you're selling roughly 90–120 days before closing — sale, transfer, then a 60–90 day seasoning period, all before your offer is even competitive. On the documented path, you keep crypto until the funding date your lender and escrow approve — typically days before closing, not months; some files require conversion, receipt of dollars and document review before closing day. Same house, same dollars, roughly a quarter of a year of difference in when you give up your position.

The two timelines, side by side

MilestoneLiquidate-and-season pathDocumented path
T-minus 120 daysSell crypto (taxable event now; market exposure in cash begins)Hold position
T-minus 90 daysFunds transferred to bank; seasoning clock startsHold position
T-minus 60–30 daysFunds seasoning; you're in cash whatever the market doesVerify wallets; Proof of Funds in ~15 min; make the offer (with lender preapproval if financing)
OfferFunds finally "usable"Offer already made
Closing weekStandard closeConversion on the funding date lender and escrow approve; documented wire direct to escrow
Closing dayKeysKeys; taxable event landed at funding, not in month one

What the left column really costs

Three things, in ascending order of pain: the tax timing (gains realized on the lender's schedule, not yours), the exposure (60–90+ days in cash — fine if the market drops, brutal if it runs), and the house (while you season, verified buyers are making offers). The left column isn't wrong for everyone — if your records are already a mess, it may genuinely be the simpler path (see when seasoning still applies). But it should be a choice, not a default you were railroaded into.

How the right column works

Sourcing instead of seasoning: verified ownership, conversion on the approved funding date, one wire to escrow. Full explanation: crypto down payment seasoning, explained. Financing? That's the crypto down payment flow — fund the down payment from your wallet, with reserves documented where your loan program counts them, and convert when your lender and escrow say. Buying outright: the left column never applied to you at all — here's the whole flow.

Start the right column today — Proof of Funds in 15 minutes

Frequently asked questions