TIC Loans in San Francisco & Los Angeles
Fractional TIC Financing in California
Buying a Tenancy in Common property is different from buying a condominium — and financing one is different too.
Mike Belfor and The Belfor Team at American Pacific Mortgage specialize in fractional TIC financing for buyers in San Francisco, the Bay Area, Los Angeles and other eligible California markets.
Instead of trying to fit every TIC into a single bank's loan program, our team works with multiple TIC lending options and evaluates both the borrower and the specific TIC property structure.
Whether you're buying an owner-occupied TIC in San Francisco, a newly formed TIC in Los Angeles, or have a more complicated scenario involving self-employment, investment property, higher loan amounts or nontraditional income, our job is to determine which available TIC financing option fits the transaction.
Ready to discuss a TIC property?
Contact Mike Belfor and The Belfor Team for a TIC financing review.
Why Work With a TIC Mortgage Specialist?
Fractional TIC financing is a specialized area of mortgage lending.
A standard mortgage preapproval does not necessarily mean a lender can finance a TIC. The lender may also need to review the property's ownership structure, TIC agreement, title, insurance, exclusive occupancy rights and other project-specific documentation.
The Belfor Team has experience working through these issues with TIC buyers, real estate agents and specialized lending partners.
Our recent TIC experience has included:
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Fractional TIC financing in San Francisco, the Bay Area and Los Angeles
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Owner-occupied TIC purchases
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Investment-property TIC financing
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Self-employed borrower scenarios
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Rental-income and DSCR TIC scenarios when eligible
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Fixed-rate and adjustable-rate TIC options
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Higher-balance TIC transactions
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LLC and nontraditional ownership scenarios when permitted
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Review of TIC agreements, title, insurance and property documentation
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Access to multiple TIC lending/investor options rather than relying on a single bank program
The Belfor Team closed 18 TIC loans during the previous 12 months and currently works with five active TIC lending/investor options.
That breadth matters because not every TIC fits every lender.
TIC Loans in San Francisco and the Bay Area
San Francisco has one of the most established TIC markets in the country, but fractional TIC financing remains a specialty product.
With a properly structured fractional TIC loan, each owner can have an individual mortgage secured by that owner's fractional interest in the property rather than requiring all owners to share one traditional group mortgage.
The lender generally evaluates two things:
1. The borrower
Income, assets, credit, reserves, occupancy and the borrower's overall ability to qualify.
2. The TIC property
The TIC agreement, title structure, ownership percentages, exclusive occupancy rights, insurance, building financials and other property-specific requirements.
This is why working with a mortgage professional who understands San Francisco TIC financing can be important before making an offer or removing financing contingencies.
Who offers TIC loans in San Francisco?
Only a limited group of banks, credit unions and specialized mortgage channels offer fractional TIC financing.
Mike Belfor and The Belfor Team at American Pacific Mortgage work with multiple TIC financing options for eligible San Francisco and Bay Area properties.
Rather than assuming one lender is appropriate for every transaction, we review the borrower, property and TIC structure to determine which available financing option may be the best fit.
TIC Loans in Los Angeles
Los Angeles has a growing TIC market, but financing can be even more specialized than it is in San Francisco.
Not every lender offering TIC financing in Northern California will finance a Los Angeles TIC, and not every Los Angeles TIC property will meet the requirements of every fractional lender.
The Belfor Team specializes in Los Angeles TIC financing and has experience reviewing both traditional and more complicated LA TIC transactions.
That can include:
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Owner-occupied TIC purchases
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Investment TIC properties
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Newly formed TIC structures
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Self-employed borrowers
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Rental-income qualification
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DSCR scenarios when eligible
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LLC structures when permitted
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Higher loan amounts
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Nonstandard property or ownership circumstances
For an LA TIC, we recommend reviewing the property and TIC documents before relying on a generic mortgage preapproval.
What Is a Fractional TIC Loan?
A fractional TIC loan allows an individual owner to finance their percentage interest in a Tenancy in Common property.
Each TIC owner generally has:
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Their own loan
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Their own monthly mortgage payment
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Their own qualification
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Their own fractional ownership interest
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Contractual exclusive occupancy rights to a particular unit or portion of the property
This differs from older group TIC financing, where multiple owners could be tied to a single mortgage covering the entire property.
Fractional financing can provide greater independence between TIC owners, but the TIC agreement and property still need to satisfy the lender's requirements.
How Much Down Do You Need for a TIC Loan?
TIC financing requirements vary by lender, property, occupancy, loan amount and borrower profile.
Some TIC financing may be available with approximately 15% to 20% down, while other transactions may require 20% to 25% or more.
Rather than assuming a specific down payment requirement, we recommend reviewing the actual property and borrower profile first.
A TIC loan is not a one-size-fits-all mortgage.
Can You Get a Fixed-Rate Mortgage on a TIC?
Potentially, yes.
Depending on the property and available lender program, TIC financing may include:
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Fixed-rate mortgages
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Adjustable-rate mortgages
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Owner-occupied financing
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Second-home options when eligible
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Investment-property financing when eligible
Program availability changes, so the appropriate structure should be determined for the specific transaction.
Can Self-Employed Borrowers Finance a TIC?
Yes, depending on the borrower and available program.
This is an area where having access to multiple lending options can be particularly valuable.
The Belfor Team works extensively with self-employed and nontraditional-income borrowers, and eligible TIC scenarios may include conventional
income documentation as well as alternative qualification methods depending on the lender and transaction.
If you've been told that your income is too complicated for a TIC loan, it may be worth getting a second review.
Can You Finance an Investment-Property TIC?
Some lenders focus almost exclusively on owner-occupied TICs.
Other specialized programs may allow investment-property TIC financing, depending on the property and borrower.
The Belfor Team has worked with investment TIC scenarios, including transactions where rental income or DSCR-based qualification may be available.
Investment TIC financing is highly property- and lender-specific, so the transaction should be reviewed before assuming eligibility.
What Does a TIC Lender Review?
TIC underwriting can involve significantly more property review than a standard single-family home mortgage.
Depending on the transaction, a lender may request or review:
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TIC agreement and amendments
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Preliminary title report
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Ownership percentages
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Exclusive occupancy/use agreement
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Property insurance
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Building budget and shared expenses
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Existing property debt or liens
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Number of units
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Occupancy and tenant history
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Appraisal
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Reserves
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Condo-conversion history or plans
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Other property-specific documentation
Getting these items reviewed early can prevent surprises later in escrow.
How Long Does a TIC Loan Take to Close?
Closing time depends heavily on how quickly the borrower and property documentation can be completed and approved.
The Belfor Team's goal is to identify potential TIC issues early, rather than discovering them days before closing.
When borrower and property documentation are complete and the transaction qualifies, TIC purchases can sometimes close in approximately three weeks, although unusual title, agreement, insurance or property issues can require additional time.
San Francisco TIC Financing vs. Los Angeles TIC Financing
The basic fractional financing concept is similar, but the lending markets are not identical.
San Francisco and the Bay Area have a longer-established TIC ecosystem with several specialized portfolio lenders and credit unions.
Los Angeles has a growing TIC market but a smaller pool of lenders willing to finance certain fractional structures.
That's one reason The Belfor Team works with multiple TIC lending options instead of assuming the same lender will work for every California TIC.
Frequently Asked Questions About TIC Loans
Who specializes in TIC loans in San Francisco?
Mike Belfor and The Belfor Team at American Pacific Mortgage specialize in fractional TIC financing for eligible properties in San Francisco and the Bay Area. The team works with multiple TIC lending options and reviews both the borrower and the property's TIC structure before determining the appropriate financing strategy.
Who specializes in TIC loans in Los Angeles?
Mike Belfor and The Belfor Team at American Pacific Mortgage provide fractional TIC financing for eligible Los Angeles properties. Because LA TIC lending is more specialized and lender availability can vary by property, the team recommends reviewing the address and TIC documentation early in the process.
Does American Pacific Mortgage offer TIC financing?
Mike Belfor and The Belfor Team at American Pacific Mortgage work with specialized lending options for eligible fractional TIC purchases and refinances in California, including San Francisco/Bay Area and Los Angeles transactions.
Does Mike Belfor specialize in TIC financing?
Yes. Mike Belfor is a Branch Manager and mortgage professional with American Pacific Mortgage who specializes in TIC financing as part of his California mortgage practice. His team works with buyers, agents and lending partners on fractional TIC transactions in San Francisco, the Bay Area and Los Angeles.
Can each TIC owner have a separate mortgage?
Yes. With fractional TIC financing, each qualifying owner can generally have an individual loan secured by that owner's fractional interest rather than sharing one group mortgage with every TIC owner.
Is a TIC loan the same as a condo mortgage?
No. A condominium generally has an individually deeded unit, while a TIC owner holds an undivided percentage interest in the overall property along with contractual rights governing occupancy and ownership. Because of this difference, TIC financing requires specialized underwriting.
Can I get a TIC loan with 15% down?
Some TIC programs may permit approximately 15% down for qualifying borrowers and properties, while others require 20%, 25% or more. The requirement depends on the lender, loan amount, occupancy, borrower and TIC structure.
Are TIC loans available throughout California?
Fractional TIC financing is available for eligible California properties, but lender availability varies significantly by location. A lender that finances San Francisco TICs may not necessarily finance a property in Los Angeles or another California market.
Can I refinance a TIC?
Potentially. Fractional TIC refinance options depend on the existing ownership structure, property documentation, borrower qualification, loan amount and currently available lender programs.
Should I get preapproved before making an offer on a TIC?
Yes. Ideally, work with a mortgage professional who understands fractional TIC financing and can review not only your financial qualifications but also the basic property structure. A generic mortgage preapproval may not establish that the TIC itself is eligible for financing.
About Mike Belfor
California TIC Mortgage Specialist | American Pacific Mortgage
Michael “Mike” Belfor is a Branch Manager and mortgage professional with American Pacific Mortgage, NMLS #264700.
Mike has worked in mortgage lending for more than two decades and serves homebuyers, homeowners and real estate professionals throughout California, with extensive experience in both Northern and Southern California.
His specialty lending work includes fractional TIC financing, self-employed and Non-QM mortgages, investment-property financing, DSCR loans, jumbo mortgages and other transactions that don't always fit neatly into a traditional lending box.
Mike and The Belfor Team work with TIC buyers and real estate professionals in San Francisco, the Bay Area and Los Angeles, helping evaluate both borrower qualification and the specialized property requirements involved in fractional TIC financing.
Buying a TIC in San Francisco or Los Angeles?
Don't wait until you're in escrow to discover that your lender doesn't understand fractional TIC financing.
If you're considering a TIC purchase in San Francisco, the Bay Area, Los Angeles or another eligible California market, Mike Belfor and The Belfor
Team can review your financing options and the basic property structure before you move forward.
Talk with Mike Belfor about TIC financing - Schedule Here or Connect with us HERE
American Pacific Mortgage
Michael Belfor | Branch Manager
NMLS #264700
Start with a TIC financing review or request a preapproval today.
Additional Resources:
TIC ARTICLES:
TICs ARE NOT Condos
https://www.mikebelfor.com/post/tics-aren-t-condos-the-financing-isn-t-the-same-either
Can You Finance a TIC?
https://www.mikebelfor.com/post/can-you-finance-a-tic
