What is Recap Home Loans?

Recap Home Loans is a full-service, first mortgage lending platform that will accept Bitcoin or Ether as additional collateral, along with the actual home, and offer 100% financing on the purchase or refinance of a home. We offer mortgage products for primary residences, second homes, or investment properties.

What are the benefits of buying a home with a Recap Home Loan?

Recap’s goal is to create a superior mortgage experience for our borrowers while providing them flexibility to utilize their Bitcoin or Ether to purchase a home without ever having to sell. The costs of selling your crypto can be enormous. Apart from the tax ramifications of selling your crypto, the biggest cost historically has been the opportunity cost of selling. Why take the risk in selling when you can unlock the liquidity of your crypto with a Recap Home Loan?

Recap focuses heavily on the borrower experience through excellent customer service and loan servicing. For the benefit of the borrower, we keep the loan servicing rights for the first mortgage and the crypto-backed loan together. By doing so, all the interest statements and loan information are in one place for the borrower, so it’s always easy to manage.

Recap Home Loans believes the key to a good portfolio is adequate diversification. Now, we are able to provide our borrowers a loan product that gives them the opportunity to build equity in both cryptocurrency and real estate.

How much Bitcoin or Ether do I need to purchase a home?

Recap Home Loans offers 3 mortgage products, each with a different amount of Bitcoin or Ether needed to purchase a home, each with different interest rates. The Loan-To-Value (LTV) of the crypto-backed loan is divided into three options: Low Leverage, Moderate Leverage, and High Leverage.

Recap will lend up to 25.0% of the crypto collateral value for the Low Leverage option, 33.3% for the Moderate Leverage option, and 50.0% for the High Leverage option.

When combined with the 80% first mortgage secured by the real estate, it’s easy to calculate how much crypto you need to purchase your home. For the Low Leverage option, you would need 80% of the home value in crypto. For the Moderate Leverage option, you would need 60% of the home value in crypto. And lastly, for the High Leverage option, you would need 40% of the home value in crypto.

For a detailed calculation of your home affordability, check out our Loan Calculator.

What are the interest rates offer by Recap Home Loans?

The interest rates on the first mortgage will depend on a variety of factors, including borrower’s credit, assets, income and employment. The interest rate on the crypto-backed loan will be a fixed rate based on the borrower’s desired LTV. The interest rate on the first mortgage and crypto-backed loan will be competitive to the market, and on a blended basis, they will be attractive compared to other financing options. For more information on rates offered, please contact us here.

Who can use the product?

Recap Home Loans was built for cryptocurrency investors. Initially, we will be offering loans collateralized by Bitcoin or Ether. Recap is  currently accepting applications for purchases and refinances in Texas. If you’d like to stay up-to-date on our lending availability, please sign up for updates here.

How does Recap Home Loans custody the cryptocurrency collateral?

Recap Home Loans uses an industry leading cryptocurrency custodian to safely store our borrowers’ cryptocurrency collateral while their loan is outstanding. The custodian provides management, security, and insurance on the cryptocurrency deposits. Recap Home Loans does not hypothecate our borrowers’ collateral!

What happens to my loan if the price of Bitcoin or Ether goes down?

The crypto-backed loan will function as a margin loan with a variable Loan-To-Value (LTV) based on the market price of the underlying cryptocurrency held as collateral; this is standard in the crypto-backed loan market. If the price of your Bitcoin or Ether decreases, and therefore the LTV of the loan increases above 75%, we may require the borrower to post additional crypto collateral or pay down the loan principal in order to rebalance the LTV to a lower level. If the borrower fails to post additional collateral or pay down a portion of the principal, and the LTV increases further, Recap will be forced to liquidate portions of the borrowers collateral in order to rebalance the LTV and protect the principal.

Does Recap Home Loans service the loan?

Recap Home Loans assigns both the first mortgage and the crypto-backed loan servicing rights to the same servicer. Keeping the servicing for both loans together is a benefit to our borrowers considering that the interest statements for each loan will be in one place.

What email addresses should I expect legitimate Recap Home Loans emails to come from?

All official correspondence will be through support@recaphomeloans.com.