TENANCY IN COMMON
Flexible Financing for Shared Ownership
A Tenancy in Common (TIC) loan is a mortgage that lets multiple people buy and co-own a property together, with each person holding their own separate share. It’s a great option for buyers who want to pool resources to afford real estate, and for brokers it opens the door to more clients and larger loan opportunities.
TIC - Making Co-Ownership Simple and Possible
How a TIC Loan Works:
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The loan is structured to recognize each co-owner’s percentage of ownership.
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Lenders may either:
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Underwrite one blanket loan covering the entire property (with all owners responsible), or
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Provide fractional TIC loans, where each co-owner has an individual mortgage tied to their ownership interest.
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TIC loans are often used for investment properties, co-buying arrangements (friends/family pooling funds), or in high-cost real estate markets where multiple buyers team up.
Benefits to a Broker Offering TIC Loans:
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Access to a Niche Market
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Many traditional lenders shy away from TIC financing due to its complexity. By offering it, a broker positions themselves as a go-to expert in a specialized space.
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Expanded Client Base
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Ideal for buyers who cannot qualify alone but can co-purchase. This includes first-time buyers in expensive markets (e.g., California, New York).
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Higher Loan Volume
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Multiple buyers on one property often means larger total financing amounts, creating more commission potential.
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Repeat & Referral Business
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TIC buyers are often part of investment groups or networks; helping one deal may lead to referrals within the group.
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Differentiation & Value-Add
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Offering TIC financing sets a broker apart from competitors who only handle standard residential loans.
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General Requirements
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Fractional financing – no blanket encumbrances
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Borrower must have exclusive use of their unit
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Project cannot be in the process of condo conversion
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4 units or less – projects with more than 4 units require documentation of DRE approval
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TIC Agreement will be reviewed by legal during loan process (allow 48 hours) cost of legal review is $600
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Broker to agree to payment of $600 legal review of TIC Agreement even if loan does not close
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TIC Agreement legal review fee of $600 will be disclosed at intake
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TIC Agreement legal review will confirm adherence to attached TIC Underwriting Requirements
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If taxes and insurance are paid by the TIC, escrows will be waived which will affect the pricing/rate
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Max LTV of 85% if project is warrantable
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Max LTV of 80% if project is not warrantable (see attributes below): o If there is commercial space greater than 35% (allowed up to 50% as NW)
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If project is new or newly converted, and all units are not sold or under contract (presale/under contract at 50% is allowed as NW)
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If single entity ownership is greater than 20% (allowed up to 30% as NW)
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If there is litigation (subject to review)
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If investor concentration is greater than 50% (allowed up to 100% as NW)