Are individual TIC loans still available?
The number of banks offering fractional financing for tenants in common groups has dropped from approximately 10 a year ago to only three or four today. As of this writing, only Sterling Bank has a comprehensive TIC lending program for purchases and refinances that is available to the general public. Several other lenders, including Bank of Marin, Circle Bank, and NCB, are honoring past commitments to provide purchase money financing for particular buildings, and considering new commitments for clients with existing banking relationships or particularly attractive projects. What are the typical terms on which individual TIC loans are offered, and how do they compare to condominium loans? As competition among TIC lenders has diminished, the terms of individual financing have become less attractive. Generally, there are fewer loan programs offered, interest rates are 1.5-2% higher than comparable programs for condominiums, underwriting guidelines restrict availability to the strongest bo
