Can the individual owners take out mortgages on the property?
With the private co-ownership properties, a mortgage from a French bank has already been secured on behalf of the owners in the process of purchasing the property. Individual owners will pay the down payment in full upon delivery of the property, and will benefit from the mortgage already in place for the balance of the purchase price. Some owners choose to finance their down payment through a home equity line of credit on their residence, or through other means on their own. For traditional fractional ownership buyers, there is no mortgage in place for the buyers in France. However, there are several US-based lenders who offer a personal loan of up to $100,000, although rates are slightly higher than for traditional mortgages. In general, a prospective purchaser would be well off investigating a home equity line of credit on their primary residence or a loan on other sole-owned vacation property, which may offer more attractive terms and a larger loan amount.
