An increasing number of veterans are looking into how cryptocurrency can play a role in their home purchase amid a time when the digital currency is surging in popularity and volatility, according to Chris Birk, vice president of Mortgage Insight.
Birk, who is also the director of Education at Veterans United Home Loans, told FOX Business that their loan teams are seeing increased interest from veterans in exploring the use of the digital currency to cover a down payment or closing costs for a home.
With VA loans, veterans have the ability to purchase a home without a down payment which, according to Birk, 8 in 10 VA homebuyers nationally do every year. However, veterans can choose to make a down payment with a VA loan and some of them are turning to their crypto investments to do so, Birk said.
"Making a down payment means veterans are borrowing less and establishing equity from day one," Birk said. "Putting money down can also lower the VA Funding Fee for borrowers who pay it."
The VA funding fee is a one-time payment to the Department of Veterans Affairs that supports the VA loan program.
One individual who used this tactic was Terrance Leonard, a recent homebuyer in Washington D.C.