Financing TICs

4 min readAug 11, 2020

How to finance a TIC (Tenants in Common) with a fractional loan.

How to finance TICs (Tenants in Common) with fractional loans

Fractional Loan

Today, TICs can only be financed through fractional loans. These loans allow each TIC buyer to qualify independently and sign an individual note. Each note is secured by a deed of trust covering only that owner’s percentage.


Currently there are two lenders who offer fractional loans: Sterling Bank & National Cooperative Bank. As TICs become more popular, more lenders may offer fractional loans.

Financing Options

Sterling Bank and National Cooperative Bank offer ARMs for TIC Financing. You must have at least a 10% down payment.

Note: 30 year fixed rate loans are not offered at this time.

The two banks who provide fractional loans, Sterling Banks and National Cooperative Bank

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