Pre-Refinance Checklist: Appraisals and Eligibility
This article outlines the requirements to begin your journey with Peoples Reserve. Whether you are applying for a Self-Repaying Mortgage (SRM) or a Bitcoin Mortgage (BMR), the "Sell-to-TruFi" transition requires specific property eligibility and a verified "Proof of Reserves" (PoR) to issue your pre-approval letter.
Table of Contents
- Unified Proof of Reserves (PoR) Process
- Property & Loan Eligibility
- Documentation & Verification Table
- The Appraisal & D.R.E.A.M. Agent Step
- Final "Ready to Start" Checklist
Unified Proof of Reserves (PoR) Process
The first step for both SRM and BMR applicants is verifying your Bitcoin (or Gold/Silver in the case of SRM) holdings. Your assets act as your financial passport, allowing us to move forward without all the red tape of traditional banks.
Verification Options (Choose One):
- Option A: External Verification (Hoseki): Connect your external cold storage (Ledger, Trezor, etc.) to Hoseki. This generates a Proof of Reserves (PoR) attestation.
- Option B: Direct Platform Deposit: Deposit your Sound Money Collateral directly into your secure Peoples Reserve account.
Minimum Reserve Requirements:
- For SRM: Verify assets equal to 100% of property value.
- For BMR: Verify Bitcoin equal to at least 20% of property value.
Note: Your equity can be seamlessly transformed into the collateral required for a Bitcoin Powered Mortgage (BPM). A 2% processing fee is deducted from your available cash-out balance.
Property & Loan Eligibility
TruFi (the exclusive LP for our mortgage products) buys the property in cash at fair market value. TruFi then seller-finances the property to you via our installment contract for deed. Therefore, your property must meet these institutional standards:
- Property Type: Single-family residential homes in the U.S. only (Commercial buildings and land-only properties do not qualify.)
- Ownership: Properties held in an LLC are eligible (requires KYB).
- Position: Full refinancing only; no second-position loans.
- Condition: We do not offer construction loans, must be 100% complete.
Documentation & Verification Table
| Requirement | Document/Tool | Product Applicability | Purpose |
|---|---|---|---|
| Identity | IDV2 (Gov-Issued ID) | SRM & BMR | Standard KYC/AML verification. |
| Bitcoin Proof | Hoseki OR Deposit | SRM & BMR | Verifies 100% (SRM) or 20% (BMR) reserves. |
| Existing Debt | Mortgage Statement | SRM & BMR | Provides the cash payoff amount. |
| Income/Credit | W2s / Credit Report | BMR ONLY | Required for under-collateralized (20%) loans. |
The Appraisal & D.R.E.A.M. Agent Step
Once your Proof of Reserves (PoR) is confirmed, the following occurs:
- Agent Assignment: Pair with a certified D.R.E.A.M. Realtor.
- Due Diligence: Professional appraisal and inspection.
- Closing Costs: Standard costs (approx. 5%) can be financed.
Note: Since TruFi is purchasing the property, the D.R.E.A.M. Agent represents TruFi in that transaction. TruFi does not work with, and cannot be represented by, non-D.R.E.A.M. Realtors. You are welcome to stay with your current Realtor, provided they are D.R.E.A.M. certified; they can Explore the DREAM Program and join here.
Final "Ready to Start" Checklist
Important: Ensure all verification steps are completed prior to the appraisal.
- KYC: Complete identity verification.
- Verify Assets: Use Hoseki or Direct Deposit.
- Property Info: Have mortgage statement and HOA details ready.