Second Home Financing and Payment FAQs | Pacaso (2024)

What are my options for financing?

Buyers can pay cash, take out a personal line of credit, or access conventional financing through our banking partners. For buyers who choose financing, we've negotiated competitive rates and offer multiple financing options for up to 70% of the home purchase. We facilitate the process, so it's faster and simpler than a typical home loan.

Am I required to finance through Pacaso?

No. We offer integrated financing available to our buyers, but you are welcome to use other sources of capital like home equity financing or cash to purchase your home.

What down payment is required to purchase a share of a second home?

Buyers can finance up to 70% of their purchase. A minimum down payment of 30% is required. We offer competitive rates for all financing levels, with preferred rates for buyers paying 30-50% down.

How quickly can I get approved?

The approval process is straightforward and fast. We’ll request a copy of your driver’s license, pay stubs, a tax return, a current bank statement and a credit report. Once all documents are provided, approval takes just a few days.

What happens if one owner defaults?

If one owner defaults, Pacaso steps in as the guarantor of the loan and continues to make all payment obligations of the loan and any associated operating expense of that owner. If the owner cannot cure the default, Pacaso can resell the share to a new owner. This protection is one of the many benefits Pacaso owners enjoy with our fully managed LLC co-ownership program.

Is the loan in my name?

The loan is between our banking partner and the LLC. Borrowers access financing directly from the LLC.

Can I pay off my loan early?

Yes. There is no prepayment penalty for buyers who finance with our banking partners.

How and when do I make my payments?

Your monthly payments are automatically deducted safely and securely using ACH.

Is there a financing fee?

For buyers who choose to finance up to 70% of their purchase through Pacaso’s banking partners, a small fee will be assessed at closing. Our Crew will provide detailed information about financing options and costs.

Can I pull out equity on my Pacaso share?

No. The Pacaso property cannot be encumbered by any other debt outside of the financing options arranged by Pacaso on behalf of the LLC.This is to protect every owner of the LLC.It is worth noting that in the case of a share being resold, any appreciation in the share price being sold is all kept by the selling owner, not Pacaso.

Who are your banking partners?

As a global company, Pacaso works with all large money center banks.

Does Pacaso accept payment in crypto?

Yes, buyers may use crypto to pay for all or part of their second home purchase. Payments are handled through BitPay, and several cryptocurrencies are accepted.

I want to purchase my Pacaso with crypto. How does the payment process work?

When you’re ready to pay, Pacaso will send a BitPay invoice by email. BitPay, our cryptocurrency payment facilitator, processes the transaction. Using BitPay, you’ll select your wallet and preferred cryptocurrency. Next, you fill in the payment details in your wallet, either manually or by scanning a QR code. You’ll then validate the transaction from your wallet. Upon validating the payment, you will immediately see the payment reflected on the invoice.

Do I have to use BitPay, or can I choose another crypto payment platform?

BitPay is the only cryptocurrency payment facilitator Pacaso works with at this time.

What cryptocurrencies can buyers transact in?

Buyers can transact in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Dogecoin (DOGE), and Wrapped Bitcoin (WBTC), plus five USD-pegged stablecoins: GUSD, USDC, USDP, DAI, and BUSD. Only ERC20 stablecoins on the ETH network are accepted.

Are there additional fees when paying with crypto?

Pacaso collects a 1% transaction fee which we pass through to BitPay for their services. Pacaso does not charge or retain any additional fees.

Can I split my payment between cash and crypto?

Yes, you are welcome to divide any non-financed portion of your purchase between cash and crypto.

Can I use crypto for a down payment and finance the rest of my home purchase?

Yes, eligible buyers can finance up to 70% of their purchase and pay their down payment in crypto. Monthly financing installments may only be paid in US dollars.

Can I pay my deposit in crypto? If I don’t end up purchasing, will my deposit be returned in crypto?

Yes, deposits can be made using crypto, but deposit funds will be returned in US dollars.

Can I pay monthly operating expenses with crypto?

No. You can always convert additional crypto to cash to fund your monthly payments, but at this time Pacaso is not accepting crypto directly for monthly owner expenses.

If I sell my Pacaso, can I get paid in crypto?

Co-ownership sales facilitated by Pacaso will be paid in US dollars.

Does paying in crypto impact my taxes?

We encourage you to consult with your tax advisor on any potential tax obligations associated with second home co-ownership, regardless of payment method.

Is BitPay a reliable platform?

BitPay is one of the most established companies in the crypto payments space. More information about the company and its investments in building a secure, stable platform are available at BitPay Support.

Is my crypto wallet secure? How am I protected against theft?

Pacaso’s cryptocurrency payment services provider, BitPay, has tips and best practices for securing your crypto here.

Why is Pacaso interested in crypto?

As Pacaso expands globally, and with mass adoption of digital currencies well underway, we’re finding that increasing numbers of second home buyers are demanding a full range of payment options. We’re committed to offering options that work for buyers, wherever they live and however they prefer to pay.

Are you the first real estate marketplace to accept crypto?

Crypto adoption is becoming more common within the real estate industry. We are pleased to support this modernization by becoming the first second home co-ownership marketplace to accept cryptocurrency payments.