Refinancing with Peoples Reserve allows homeowners to escape the traditional banking system. You sell your home and have it financed right back through TruFi, our exclusive liquidity provider. By leveraging your Collateral holdings, you can choose a path that best suits your financial needs.
- Self-Repaying Mortgage (SRM): Eliminates traditional qualification hurdles by using 1:1 collateral with either Bitcoin Gold or Silver.
- Bitcoin Mortgage (BMR): Users with at least 20% in Bitcoin Collateral, builds an "equity engine" to pay off a 30-year mortgage in as little as 8 years (depending on Bitcoin CAGR).
Note: You can transform your equity into collateral for a Bitcoin Powered Mortgage (BPM) for a 2% processing fee when converting to Bitcoin (BMR+SRM), Tokenized Gold (SRM), or Tokenized Silver (SRM). All remaining equity can be rolled into your new contract or taken as a fee-free USD cash-out.
Comparison: Self-Repaying Mortgage vs. Bitcoin Mortgage
| Feature | Self-Repaying Mortgage (SRM) | Bitcoin Mortgage (BTC) |
|---|---|---|
Required Collateral |
Bitcoin/Gold/Silver (1:1 / 100% of loan value) |
Bitcoin (20% Minimum BMR Escrow) |
Qualifications |
No credit or income checks |
Standard credit & income checks |
Interest Rate (APR) |
3% – 15% (based on LTV/PRN Tier) |
3% – 6% (based on PRN Tier) |
Upside of BTC |
100% Borrower's |
Shared Split (20% – 50% Borrower) |
Primary Benefit |
Privacy and total Bitcoin retention |
Fast payoff for lower BTC holders |
Notes: Rates vary based on loyalty level
Bitcoin Escrow: Your Bitcoin collateral is held by BitGo in a bankruptcy-remote SPV. This ensures no rehypothecation. Your Bitcoin is never lent out and remains verifiable on-chain.
The Equity Breakdown: Collateral and Cash-Out
When you refinance, your home's equity (Fair Market Value minus your existing mortgage) is "unlocked" and can be utilized in three primary ways to power your new contract:
-
Meet Your Collateral Requirement: Transform your equity into the "Sound Money" collateral needed to qualify (20% for a BMR or 100% for an SRM).
- Note: Converting equity to Bitcoin, Gold, or Silver carries a 2% processing fee. You can avoid this fee entirely by providing your own existing collateral assets instead of converting your equity.
- Lower Your Monthly Bill: Any equity left over after meeting your collateral requirement can be "rolled" into the new contract. This reduces the total principal balance, which lowers your monthly payment.
- Take Fee-Free Cash: You may take remaining equity as a USD cash-out. Peoples Reserve offers this cash-out fee-free.
Option 1: The Self-Repaying Mortgage (SRM)
The SRM is a non-custodial loan for those with significant Bitcoin savings. It removes the friction of traditional underwriting by letting your assets speak for themselves.
- Collateral Requirement: Minimum of 1:1 sound money collateral (Bitcoin, Gold, or Silver)
- Bitcoin-Based Lending: Your Bitcoin is your credit score. There is no hard credit pull and no income verification Debt-to-Income ratio (DTI) required to qualify.
- Variable APR Logic: Your rate is linked to your collateral ratio. If you post 1:1 Bitcoin collateral, your rate starts between 7%–10% (based on Loyalty Level). If you over-collateralize (e.g., 3:1), your rate can drop as low as 3% (at the Diamond Level).
- Zero Liquidation Risk: The Collateral and property title are dual-collateralized in a bankruptcy-remote SPV (held by BitGo). If Collateral price drops your collateral ratio will change, which may increase your interest rate. Your APR will go up to a max of 5% above your starting APR. There are no margin calls as long as payments are maintained.
- Self Repaying Mortgage (SRM) is the most private way to retain 100% of your Bitcoin upside.
| Tier | Lowest APR (33% LTV) |
|---|---|
| Basic | 6% |
| Silver | 5% |
| Gold | 4% |
| Diamond | 3% |
Option 2: The Bitcoin Mortgage (BMR Engine)
This option is for borrowers who want to buy or refinance with less than 1:1 Bitcoin collateral. It replaces the "sunk cost" of traditional mortgage insurance with a productive Bitcoin asset.
- Collateral Requirement: Minimum of 20% (Max of 30%) sound money collateral (Bitcoin)
- Bitcoin Mortgage Reserve (BMR): Instead of a traditional down payment, you contribute 20%–30% of the loan value in Bitcoin into an escrow account. This escrow builds over time as your monthly BMR payments buy more Bitcoin.
- Waiver Threshold: If you contribute 30% in Bitcoin at closing, the monthly BMR payment requirement is waived entirely.
- The 8-Year Payoff: Based on Bitcoin's historical growth, a 30-year mortgage can potentially be paid off in 8 years (Diamond Tier) or 12 years (Basic Tier) once your share of the escrow exceeds the remaining principal.
- Upside Sharing: Unlike a Self Repaying Mortgage (SRM), the lender shares in the Bitcoin growth. Your share of the appreciation is based on your Loyalty Tier.
- Bitcoin Mortgage (BMR) is the fastest way to turn 30 years of debt into early ownership if you are building your position.
| Tier | APR | Upside Share |
|---|---|---|
| Basic | 6% | 20% |
| Silver | 5.5% | 25% |
| Gold | 4% | 40% |
| Diamond | 3% | 50% |