This FAQ article answers common questions about the People’s Reserve Self-Repaying Mortgage (SRM), including collateral requirements, loyalty tiers, and the unique mechanism that uses market appreciation to pay down debt. Reviewing this information can help you understand how to leverage your Bitcoin, Gold, or Silver to finance a home purchase while maintaining 100% of your asset's upside and eliminating the risk of liquidation or margin calls.
Table of Contents
- What is a Self-Repaying Mortgage (SRM)?
- How does the "Self-Repaying" mechanism actually work?
- What are the minimum requirements to qualify?
- How do the interest rates and PRN Loyalty Tiers work?
- What happens if the price of Bitcoin or Gold crashes?
- Where is my collateral held?
- Can I get my Bitcoin or Gold back?
- Are there prepayment penalties?
- Can I use this for a construction loan or a refinance?
What is a Self-Repaying Mortgage (SRM)?
The Self-Repaying Mortgage (SRM) is a premium financing product within the People’s Reserve Bitcoin-Powered Mortgage (BPM) suite. It allows borrowers to leverage "Sound Money" (Bitcoin, Gold, or Silver) to finance a home purchase without selling their assets. It is designed for those who want to maintain 100% of their asset's upside while accessing the world’s most competitive capital rates.
How does the "Self-Repaying" mechanism actually work?
The SRM uses asset appreciation to offset debt. You deposit collateral equal to 100% of the home’s value. As your Bitcoin, Gold, or Silver appreciates over time, your collateral ratio rises. This triggers an automatic decrease in your variable interest rate. You can also withdraw any collateral that exceeds the 1:1 ratio or apply it directly to the principal, effectively letting the market pay off your home.
What are the minimum requirements to qualify?
- Collateral: 100% of the home purchase price in Bitcoin (BTC), Kinesis Gold (KAU), or Kinesis Silver (KAG).
- Credit/DTI: Not required. There are no credit checks, income verifications, or debt-to-income ratio requirements. Your "Sound Money" acts as your credit score.
- Property Type: Single-family residential homes located within the U.S. (including investment properties held in an LLC).
How do the interest rates and PRN Loyalty Tiers work?
Your starting interest rate is determined by your PRN Loyalty Tier (calculated based on your total loan/portfolio amount):
| Loyalty Tier |
Basic
Up to 1.99%
|
Silver
2% – 5.99%
|
Gold
6% – 9.99%
|
Diamond
10% +
|
|---|---|---|---|---|
| Starting APR | 10% | 9% | 8% | 7% |
| Minimum Starting LTV | 100% | 100% | 100% | 100% |
| Lowest APR (33% LTV) | 6% | 5% | 4% | 3% |
| Closing Fees Discount | — | 10% | 25% | 50% |
| # of Mortgages | 1 | 1 | 1 | 2 |
As your collateral ratio increases, your rate can drop up to 4% below your starting APR (reaching as low as 3% for Diamond members). If collateral value drops, the rate can increase up to a maximum of 5% above your starting APR.
What happens if the price of Bitcoin or Gold crashes?
You can choose to add more collateral or rent/purchase PRN tokens to stabilize your tier, but you are never forced to do so.
Where is my collateral held?
All collateral is held by BitGo, an industry-leading qualified custodian, in a bankruptcy-remote Special Purpose Vehicle (SPV). There is zero rehypothecation, meaning your assets are never lent out or used to back other debts. They remain yours, evidenced by on-chain proof of reserves.
Can I get my Bitcoin or Gold back?
Yes. You can withdraw any excess collateral that rises above the 1:1 ratio at any time. Once the mortgage is fully paid off, 100% of your pristine collateral is returned to your self-custody. Unlike the Bitcoin Mortgage (BMR), the SRM has no upside split—all appreciation belongs to the borrower.
Are there prepayment penalties?
No. You can pay off your Self-Repaying Mortgage in USD, USDC, prUSD, or BTC at any time with no fees or penalties, reclaiming 100% of your escrowed assets.
Can I use this for a construction loan or a refinance?
While we do not offer initial construction loans, you can refinance a completed build into an SRM. For existing homes, we offer a "Sell-to-Refi" process through TruFi, our liquidity provider, who purchases the home at fair market value and finances it back to you under SRM terms.