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 I pay off my mortgage early?
- 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 decades early.
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. For high credit scores (760+), 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, the gains are shared between you and the lender based on your average PRN Loyalty Tier over the life of the loan. We track your tier across every "Pay Period" (monthly payment) to reward long-term commitment:
- 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 were Diamond for 70 out of 120 months, you qualify for the Diamond 50/50 split for that portion of the growth.
Can I pay off my mortgage early?
Yes. You can pay off your mortgage in USD at any time with no prepayment penalties. If Bitcoin maintains its historical growth (~30% 8-year CAGR), your BMR escrow could exceed your remaining balance in just 8 years. At that point, the escrow is liquidated, the lender is paid, and you own your home free and clear.
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?
The initial deposit facilitates the upside split. 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 KYC/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 |
|---|---|---|
| Down Payment | 20% Cash (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.