TIC Financing
A variety of financing programs are available through institutions specializing in TIC lending. Depending on credit scores, down payments, and other criteria unique to each situation; a financing expert will present all available options. The ultimate goal is for all buyers to agree on the most ideal loan option while getting the best interest rate available.

Currently 2 types of mortgages are popular with TICs: Fractionalized Loans, and Group Loans.

Fractionalized Loan
Fractionalized Loans allow for you, as part of a group of individuals buying a building together under TIC ownership, to own your own mortgage that is completely independent of the other parties in your group. The upside of a Fractionalized Loan is in the resale, refinancing in the future and making title changes, such as a spouse or significant other. Basically, it allows for autonomy from the group and flexibility when you're ready to sell. To prequalify, the banks look at your credit score (minimum 680*), down payment, reserves, and last two years income tax records. Interest rates average about 1% higher for Fractionalized Loans than Group Loans. Best to come in at 20% down (or more), although banks will accept as low as 10%. In Fractionalized Loans, should a partner within the group default, there is no negative consequence to you.

Group Loan
Group Loans allow for a group of individuals to purchase a building together under one title and one mortgage. The benefit of the Group Loan is that your monthly payments will be less, because your interest rate is lower by a point. All parties credit scores (minimum 680*), down payment, reserves, and last two years income tax records are accounted for when determining the elegibility and interest rate of the Group Loan. The downside is that every individual in the group is equally responsible for the loan. This is the most economic option if the group can agree to go on mortgage together. Program requirements vary per situation since each group is unique.

Indivi dual/Fractional TIC Loan Sources
Bank of Marin (developers only): (Sherry Hendrickson) 415-884-7785
Circle Bank: (Mark Skolnick) 415-893-7701 ext 106
First Capital Group: (Julie Shumate) cell: 925-413-6963, office: 415-440-5626
Integrated Mortgage: (Elena Pons) 415-575-4204
Sterling Bank: (Bill Smalley) 1-800-435-1756
United Commercial Bank: 1-800-748-6470

Group TIC Loan Services
First Capital Group (415) 440-5626
www.fcgmortgage.com
Integrated Mortgage: (Elena Pons) cell: 415-575-4204, office: 415-255-2222
Email: info@imc4loans.com
Circle Bank: (Mark Skolnick) 415-893-7701 ext 106

Prequalification

Click here! to prequalify online, using a secure/encrypted (SSL) connection.

If your Credit Score is under 680*

Operation Hope is a non-profit organization offering:
• Free Experian Credit Report
• Free one on one credit consultation
• Free dispute letter writing if needed
• Free comprehensive budget preparation
• Access to 8 week Money Management classes

Click here for FREE Credit Counseling

HOPE Center, Oakland
3062 East 9th Street
Oakland, California 94601
510 535 6700
oakland@operationhope.org
Monday through Friday 9am - 7pm
Saturday 10am - 2pm
Sunday - Closed

*Credit Score Requirements for Fractional Loans

Minimum credit score of 680 as indicated above is for a Fully Amoritized Loan, showing employment with W-2 forms. Please see below for further scenarios and requirements.

Fully Amoritized Loans
W-2 : 680
Self-Employed : 700

10 and 20 year Amortization Loans
W-2 : 700
Self-Employed : 720

General Program Requirements for Fractional Loans

• Interest Only and 40 year Amortization available to a maximum LTV (Loan to Value) of 80%
• All income and assets must be fully documented
• Property types are 2-8 Unit
• Borrowers must have 6 months reserves after closing
• A three year declining prepayment penalties apply to all products
• Max DTI is 45% for Fully Amortizing Loans, 40% for Interst Only Loans

Educate yourself

Free Rent vs. Own Analysis

Basic Information for First-Time Home Buyers

Home Ownership Calculator

The Basics of Real Estate Lending and Mortgage Loans

Overview of the Loan Process

Homeowners Associations (HOAs) Questions and Answers