diff --git a/client/asset/dcr/rpcwallet.go b/client/asset/dcr/rpcwallet.go
index b0565e9dde..61605f56c3 100644
--- a/client/asset/dcr/rpcwallet.go
+++ b/client/asset/dcr/rpcwallet.go
@@ -149,7 +149,8 @@ func newRPCWallet(cfg *Config, chainParams *chaincfg.Params, logger dex.Logger)
 		log:         log,
 	}
 
-	certs, err := os.ReadFile(cfg.RPCCert)
+	cert := dex.CleanAndExpandPath(cfg.RPCCert)
+	certs, err := os.ReadFile(cert)
 	if err != nil {
 		return nil, fmt.Errorf("TLS certificate read error: %w", err)
 	}
diff --git a/client/cmd/dexc/config.go b/client/cmd/dexc/config.go
index 065579aafd..0df95dfb71 100644
--- a/client/cmd/dexc/config.go
+++ b/client/cmd/dexc/config.go
@@ -95,23 +95,25 @@ type Config struct {
 	LocalLogs    bool   `long:"loglocal" description:"Use local time zone time stamps in log entries."`
 	CPUProfile   string `long:"cpuprofile" description:"File for CPU profiling."`
 	HTTPProfile  bool   `long:"httpprof" description:"Start HTTP profiler on /pprof."`
-	ShowVer      bool   `short:"V" long:"version" description:"Display version information and exit"`
+	ShowVersion  bool   `short:"V" long:"version" description:"Display version information and exit"`
 	TorProxy     string `long:"torproxy" description:"Connect via TOR (eg. 127.0.0.1:9050)."`
 	TorIsolation bool   `long:"torisolation" description:"Enable TOR circuit isolation."`
 	Net          dex.Network
 	CertHosts    []string
 }
 
-var defaultConfig = Config{
-	AppData:    defaultApplicationDirectory,
-	Config:     defaultConfigPath,
-	DebugLevel: defaultLogLevel,
-	CertHosts: []string{defaultTestnetHost, defaultSimnetHost,
-		defaultMainnetHost},
-}
-
 // configure processes the application configuration.
 func configure() (*Config, error) {
+
+	// Default configuration
+	defaultConfig := Config{
+		AppData:    defaultApplicationDirectory,
+		Config:     defaultConfigPath,
+		DebugLevel: defaultLogLevel,
+		CertHosts: []string{defaultTestnetHost, defaultSimnetHost,
+			defaultMainnetHost},
+	}
+
 	// Pre-parse the command line options to see if an alternative config file
 	// or the version flag was specified. Override any environment variables
 	// with parsed command line flags.
@@ -133,14 +135,13 @@ func configure() (*Config, error) {
 	}
 
 	// Show the version and exit if the version flag was specified.
-	if preCfg.ShowVer {
+	if preCfg.ShowVersion {
 		fmt.Printf("%s version %s (Go version %s %s/%s)\n",
 			version.AppName, version.Version(), runtime.Version(), runtime.GOOS, runtime.GOARCH)
 		os.Exit(0)
 	}
 
-	// If the app directory has been changed, replace shortcut chars such
-	// as "~" with the full path.
+	// Update the application directory if specified on CLI.
 	if preCfg.AppData != defaultApplicationDirectory {
 		preCfg.AppData = dex.CleanAndExpandPath(preCfg.AppData)
 		// If the app directory has been changed, but the config file path hasn't,
diff --git a/dex/path.go b/dex/path.go
index cb1b1f1238..524cac5934 100644
--- a/dex/path.go
+++ b/dex/path.go
@@ -5,62 +5,48 @@ package dex
 
 import (
 	"os"
-	"os/user"
 	"path/filepath"
-	"runtime"
 	"strings"
 )
 
-// CleanAndExpandPath expands environment variables and leading ~ in the
-// passed path, cleans the result, and returns it.
+// CleanAndExpandPath expands environment variables and leading ~ in the passed
+// path, cleans the result, and returns it.
 func CleanAndExpandPath(path string) string {
 	// Nothing to do when no path is given.
 	if path == "" {
 		return path
 	}
 
-	// NOTE: The os.ExpandEnv doesn't work with Windows cmd.exe-style
-	// %VARIABLE%, but the variables can still be expanded via POSIX-style
-	// $VARIABLE.
-	path = os.ExpandEnv(path)
+	dirName := ""
+
+	// This supports Windows cmd.exe-style %VARIABLE%.
+	if strings.HasPrefix(path, "%") {
+		// Split path into %VARIABLE% and path
+		pathArray := strings.SplitAfterN(path, "/", 2)
+		dirEnv := strings.ToUpper(strings.Trim(pathArray[0], "%/"))
+		path = pathArray[1]
+		dirName = os.Getenv(dirEnv)
+		if dirName == "" {
+			// This does not support Windows XP and before as
+			// they didn't have a LOCALAPPDATA.
+			dirName = os.Getenv("LOCALAPPDATA")
+		}
+		return filepath.Join(dirName, path)
+	}
 
 	if !strings.HasPrefix(path, "~") {
+		// NOTE: The os.ExpandEnv doesn't work with Windows cmd.exe-style
+		// %VARIABLE%, but the variables can still be expanded via POSIX-style
+		// $VARIABLE.
+		path = os.ExpandEnv(path)
 		return filepath.Clean(path)
 	}
 
-	// Expand initial ~ to the current user's home directory, or ~otheruser
-	// to otheruser's home directory.  On Windows, both forward and backward
-	// slashes can be used.
-	path = path[1:]
-
-	var pathSeparators string
-	if runtime.GOOS == "windows" {
-		pathSeparators = string(os.PathSeparator) + "/"
-	} else {
-		pathSeparators = string(os.PathSeparator)
-	}
-
-	userName := ""
-	if i := strings.IndexAny(path, pathSeparators); i != -1 {
-		userName = path[:i]
-		path = path[i:]
-	}
-
-	homeDir := ""
-	var u *user.User
-	var err error
-	if userName == "" {
-		u, err = user.Current()
-	} else {
-		u, err = user.Lookup(userName)
-	}
-	if err == nil {
-		homeDir = u.HomeDir
-	}
-	// Fallback to CWD if user lookup fails or user has no home directory.
-	if homeDir == "" {
-		homeDir = "."
+	dirName, err := os.UserHomeDir()
+	if err != nil {
+		// Fallback to CWD if retrieving user home directory fails.
+		dirName = "."
 	}
 
-	return filepath.Join(homeDir, path)
+	return filepath.Join(dirName, path[1:])
 }