Police also seized cocaine and cannabis when they raided Lee Hobson's address on August 10, 2019.
Newcastle Crown Court heard Hobson, 34, had been storing the money and cocaine on behalf of someone else to pay off a debt.
Miss Recorder Davies said: "These offences arise out of the execution of a search warrant at your home address, you lived there with your partner.
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"The police found in the house 55g of cocaine and 634g of cannabis and they found £24,600 at various locations around the house.
"Your mobile phone was examined. It had messages which proved you had been supplying cannabis."
Hobson, now of Petersfield Road, Penywell, Sunderland, admitted possession with intent to supply cocaine, possession with intent to supply cannabis and possession of criminal property.
However, the court heard that he pleaded guilty to the class A offence on the accepted basis he was looking after the cash and cocaine for someone else, before intending to supply the drug back to them.
The judge added: "The cannabis, however, you were in possession of that as part of street dealing.
"The £25,000 - some of that was money to be repaid and some of it was just off supplying drugs.
"In mitigation, firstly you are someone who has only got a single previous conviction. That was now about ten years ago and it was for a simple possession of cannabis.
"Secondly, these offences arises out of your conduct which is now over two years ago and there has been no repetition the court is aware of.
"You got into debt running your own business.
"Getting involved in drug dealing was foolish and reckless, particularly as it involved using your home which you shared with someone else."
Gavin Doig, defending, said that while he accepted the offending crossed the custodial threshold, the sentence could be suspended.
The judge accepted that given the strong mitigation she could suspend the term of imprisonment.
Hobson was sentenced to 21 months suspended for 18 months, with a three-month night-time curfew.
He must also complete 200 hours of unpaid work.