TIC Financing in San Francisco:
What Buyers Should Know
If you are considering a tenancy in common, or TIC, in San Francisco, one of your primary questions is likely to be about financing for the purchase. Can you have your own mortgage? How much will you need for a down payment? Will the financing be more expensive than it would be for a condominium?
Individual TIC financing allows buyers to obtain a loan secured by their ownership share in the property. The process involves specialized lenders and additional attention to the building’s ownership documents, but it can provide a practical path to purchasing a home you love.
In 2025, Drew Wilkerson ranked as the #1 agent for TIC sales in San Francisco by transaction count. Drew and the Wilkerson Team help buyers understand how financing fits into the larger purchase decision. We encourage buyers to evaluate the home, ownership structure, and actual loan options together before deciding whether a particular TIC is the right fit.
For an introduction to the ownership structure itself, start with our guide, What Is a TIC in San Francisco?
Can You Have Your Own Mortgage on a TIC?
Yes. Most financed TIC purchases today use individual fractional loans, also called fractional interest financing. Each buyer has their own mortgage secured by their ownership interest in the property.
This is different from a shared building loan, where multiple owners participate in one mortgage. Shared loans were once the norm, but are now uncommon in the transactions we see. An individual loan is generally the financing structure buyers can expect.
How Much Down Payment Do You Need?
A 20% down payment is a common starting point for TIC buyers and generally provides access to favorable financing options.
Some programs may allow as little as 15% down, although the interest rate is typically higher than it would be with 20% down. Other lenders may require 25% or 30%.
A larger down payment is not necessary for every TIC purchase. There are reputable lenders offering competitive terms with 20% down, and we are happy to share our best connections with you for an initial consultation.
How Do TIC Interest Rates Compare With Condominium Rates?
The difference between TIC and condominium financing has narrowed considerably.
Historically, TIC interest rates could be close to two percentage points higher than condominium rates. In our experience, that difference has more recently been within one percentage point, although the exact comparison depends on the lender, loan structure, down payment, and rates available at the time.
When comparing homes, we encourage buyers to look at both the purchase price and the actual financing terms. A lender can provide a clear picture of the monthly payment for each property you are considering.
Can You Get a 30-Year Fixed-Rate Loan for a TIC?
Yes, although fewer TIC lenders offer 30-year fixed-rate mortgages.
Many TIC buyers choose an adjustable-rate mortgage, or ARM, because these loans are more widely available and often offer a more attractive initial interest rate. An ARM has an initial fixed-rate period, after which the rate can adjust according to the loan’s terms.
For buyers who prefer the consistency of a 30-year fixed rate, options are available. The choice generally comes down to the available rates, how long the buyer expects to own the home, and their preference for long-term payment predictability.
If a property has a viable path to condominium conversion, that may also inform the decision. After conversion, an owner may be able to refinance into traditional condominium financing. We help buyers understand the property’s conversion potential so they can discuss that possibility with their lender.
Which Lenders Offer TIC Financing?
A small group of lenders offers TIC financing, and the best fit depends on the buyer’s down payment, preferred loan structure, and closing timeline.
Redwood Credit Union is one of our primary recommendations. In our experience, their combination of competitive interest rates and ability to close quickly makes them a strong option for many buyers, particularly when speed matters in a competitive offer.
Other lenders may be a better fit for particular needs. Bank of San Francisco is another option, generally with a larger minimum down payment. National Cooperative Bank (NCB) is worth considering for buyers who prioritize a 30-year fixed-rate mortgage, although their closing process may take longer.
We help buyers connect with lenders whose programs align with the purchase they want to make.
Does a TIC Take Longer to Close?
Not necessarily. While TIC financing once commonly required at least 30 to 35 days, experienced TIC lenders can now offer closing timelines comparable to condominium financing.
The lender you choose matters. A lender who regularly handles TIC purchases and can move quickly is especially helpful when preparing a competitive offer.
Most of the documents needed to review the property, including disclosures, the TIC agreement, and HOA financial information, are typically available upfront. Occasionally, a lender may request an update to the TIC agreement. These updates can often be handled within a few days, depending on what is needed.
Do You Need a Separate TIC Preapproval Before Looking at Homes?
You do not need a separate TIC preapproval to include TICs in your home search.
We encourage buyers to keep TICs in their search, but we do not want you to go through two separate preapproval processes simply to explore your options.
If you find a TIC you love, we can connect you with one of the excellent TIC lenders we work with. They can often review your information and provide a preapproval within 1–3 days. Our standard process is to coordinate that step before submitting an offer so you understand your financing and can move forward with confidence.
Considering a TIC in San Francisco?
The right financing is part of finding the right home. Drew Wilkerson and the Wilkerson Team can help you compare TICs and condominiums, understand the details of a particular property, and connect with experienced lenders.
If you are considering a TIC purchase, we would love to help you explore your options.
Loan programs, down payment requirements, interest rates, and closing timelines vary by lender and are subject to change.
