Tenancy-in-common (TIC) interests require what’s called fractional financing. You essentially have a loan on your interest in the property instead of sharing one loan with all the other TIC owners.
Many buyers seriously consider TICs because they know they’ll typically get better space in a more central location than they would from a condo.
But the loan guidelines for fractional financing are different from the ones for condo loans. So before you hit the open house circuit, check out these guidelines courtesy of TIC loan expert Gordon Friedman at Guarantee Mortgage:
– 1% origination fee: All TIC loans require an upfront fee equal to 1% of the loan amount borrowed Continue Reading