Traditional mortgages force you to lock your capital away; once you pay a down payment, that cash is "trapped" as home equity, unable to earn a return elsewhere. The Peoples Reserve Bitcoin Mortgage (BMR) changes the math. Instead of locking 20% of your net worth into a single illiquid asset (your home), BMR allows your capital to remain active, leveraging Bitcoin to create a dual-growth engine where your home and your Bitcoin appreciate simultaneously.
Table of Contents
- What is a Bitcoin Mortgage (BMR)?
- How is BMR different from a Self-Repaying Mortgage (SRM)?
- How much Bitcoin do I need to contribute?
- What is a "BMR Payment" and how is it different from PMI?
- How do Loyalty Levels affect BMR?
- How does the "Upside Split" work?
- Can BMR really pay off my mortgage early?
- Can I pay off my Bitcoin Mortgage in USD at any time and reclaim 100% of the escrowed BTC if I sell the property? Does the upside split ratio still apply or only when it is a natural payoff.
- What happens if Bitcoin's price drops significantly?
- What happens to my initial Bitcoin contribution at the end?
- What if I sell the property or refinance early?
- Are investment properties eligible?
- BMR vs traditional mortgage
What is a Bitcoin Mortgage (BMR)?
The Bitcoin Mortgage is a wealth-building alternative to a traditional down payment. Instead of "losing" your cash to a traditional down payment, you contribute Bitcoin into a Bitcoin Mortgage Reserve (BMR) escrow account. This Bitcoin stays in the market, grows over time, and is designed to eventually pay off your entire mortgage principal years in advance.
How is BMR different from a Self-Repaying Mortgage (SRM)?
While an SRM typically requires 1:1 Bitcoin-to-Loan collateral, the BMR is designed for borrowers with less Bitcoin. It allows you to buy a home with as little as a 20% Bitcoin contribution. This eliminates the need for traditional Private Mortgage Insurance (PMI) and creates a secondary "equity engine" alongside your home’s value.
How much Bitcoin do I need to contribute?
The minimum contribution is 20% of the home's purchase price. You can contribute up to 30%; if you reach the 30% threshold, your monthly BMR payment is waived entirely.
What is a "BMR Payment" and how is it different from PMI?
In a traditional mortgage with less than 20% down, you pay PMI, a non-refundable fee that only protects the lender. With a Bitcoin Mortgage, you make a monthly BMR payment based on your credit score. Unlike PMI, your BMR payments actually buy Bitcoin and benefit you the borrower by building a secondary equity engine. For high credit scores (780+), these rates can be as low as $10/month per $100K borrowed. You are essentially "stacking sats" every month within your own reserve to accelerate your debt-free timeline.
How do Loyalty Levels affect BMR?
| Loyalty Tier |
Basic
Up to 1.99%
|
Silver
2% – 5.99%
|
Gold
6% – 9.99%
|
Diamond
10% +
|
|---|---|---|---|---|
| Interest Rate | 6% | 5.5% | 4% | 3% |
| Minimum Reserve Contribution | 20% | 20% | 20% | 20% |
| Reserve Split (Borrower/Lender) | 20% / 80% | 25% / 75% | 40% / 60% | 50% / 50% |
| Closing Fees Discount | — | 10% | 25% | 50% |
| # of Mortgages | 1 | 1 | 1 | 2 |
How does the "Upside Split" work?
As the Bitcoin in your BMR escrow appreciates, that growth is shared between you and the lender based on the PRN Loyalty Tier you qualify for over the life of the loan. We track your tier across every "Pay Period" (monthly payment) to reward long-term commitment.
To qualify for a tier's split, you must hold that tier for at least 80% of your Pay Periods. Once you meet that threshold, the tier's split applies to your full appreciation:
- Diamond: 50% to Borrower / 50% to Lender
- Gold: 40% to Borrower / 60% to Lender
- Silver: 25% to Borrower / 75% to Lender
- Basic: 20% to Borrower / 80% to Lender
Example: If you held Diamond for 100 out of 120 Pay Periods (about 83%), you pass the 80% threshold and earn the Diamond 50/50 split on your full appreciation.
Can BMR really pay off my mortgage early?
If Bitcoin maintains its historical ~30% 8-year CAGR, your BMR escrow value could exceed your remaining principal balance by year 8. At that point, the escrow is liquidated, you own your home free and clear, and the lender receives principal plus their BMR share.
Can I pay off my Bitcoin Mortgage in USD at any time and reclaim 100% of the escrowed BTC if I sell the property? Does the upside split ratio still apply or only when it is a natural payoff.
Borrowers can pay off their Bitcoin Mortgage at any time, with no prepayment penalties. The BMR escrow is held by the lender to facilitate the upside split between both parties at the time of payoff. The time of payoff is the time of the split, ownership is then transferred and that is a taxable event.
*Not tax advice, please consult with your personal tax professional.
What happens if Bitcoin's price drops significantly?
The lender accepts this risk. Your home and mortgage remain intact, and there are no margin calls or liquidations due to price volatility. You simply continue making your regular monthly payments. Your worst-case scenario is a standard mortgage; your best-case is an early payoff via Bitcoin growth.
What happens to my initial Bitcoin contribution at the end?
At the time of payoff (sale, refinance, or maturity), the Bitcoin is liquidated. If you are a Diamond member, 50% of the total value (Initial Deposit + Growth) is attributed to your loan balance. This effectively uses your Bitcoin to wipe out your mortgage principal.
What if I sell the property or refinance early?
The BMR escrow is liquidated at the time of payoff. The price appreciation is split according to your average loyalty tier, and your share of those gains is applied to your remaining loan balance. Please note that the transfer of Bitcoin ownership at this stage is considered a taxable event.
Are investment properties eligible?
Yes. Single-family residential investment properties in the U.S. are eligible, including those held within an LLC, provided the beneficial owner completes the required Know Your Customer (KYC) / Know Your Business (KYB) verification.
What happens if Bitcoin's price drops significantly?
The lender accepts this risk. Your home and mortgage remain intact. You simply continue making your regular monthly payments as you would with a traditional mortgage. Your worst-case scenario is a standard mortgage; your best-case is an early payoff via Bitcoin.
BMR vs traditional mortgage.
| Feature | Traditional Mortgage | Peoples Reserve BMR |
|---|---|---|
| Upfront Cost | 20% Down Payment (Fixed price) | 20% Bitcoin (Stays Invested) |
| Monthly Insurance | PMI (Non-refundable Fee) | BMR Payment (Buys You Bitcoin)* |
| Equity Growth | Home Appreciation Only | Home + Bitcoin Appreciation |
| Payoff Duration | 30 Years (Fixed) | ~8–12 Years (Projected via CAGR) |
Note: The 8 year payoff assumes bitcoin maintains its 30% 8 year CAGR.