HOW ARE FRACTIONAL OWNERSHIP TRANSACTIONS FINANCED?
Industry surveys have shown that only 30-35% of fractional ownership purchases involve financing, and 65-70% of fractional interest purchasers pay all cash for their fractional ownership interest. Historically, when fractional ownership arrangements involving a single house or apartment were financed, the only available option was to obtain a group mortgage secured by the entire home. Larger projects could obtain fractional financing, where each fractional owner could get his/her own loan secured only by his/her ownership interest. More recently, individual fractional financing became available for fractional ownership arrangements involving a single house or apartment, but events in the lending industry have slowed this trend. If there will be a group mortgage, the fractional owners will need to calculate how to divide the mortgage payments. If the down payment is shared in the same proportion as the price, the mortgage will also be divided in proportion to price. On the other hand, i
