TIC Loans with Just 15% Down Payment up to $2 Million: A Smart Financing Solution for San Francisco and Los Angeles Buyers

 

Buying a home in high-cost markets like San Francisco or Los Angeles isn’t easy. Prices are steep, inventory is limited, and competition is fierce. For many, Tenancy in Common (TIC) properties provide a more affordable path to homeownership or investment. But historically, TIC financing came with challenges: few lenders, high down payments, and rigid loan requirements.

That’s changing. Today, buyers can qualify for TIC loans with as little as 15% down, loan amounts up to $2 million, and flexible options for both self-employed borrowers and investors. This new wave of financing is opening doors for more buyers to own in California’s most desirable markets.

What Is a Tenancy in Common (TIC)?

A Tenancy in Common (TIC) is a unique form of co-ownership where two or more people share ownership of a property, each holding a percentage interest. While you technically own a share of the entire building, a TIC agreement gives you exclusive rights to occupy your specific unit.

TICs are especially common in San Francisco, where condo conversions are restricted, and they’re growing in popularity in Los Angeles as well. Because they aren’t condos, TICs require specialized financing but now that financing is more accessible than ever.

Why Buyers Choose TICs in San Francisco and Los Angeles

TICs are becoming a popular choice in California’s most competitive housing markets. Here’s why:

• Lower Cost – TIC units are often priced 10–20% less than condos in the same neighborhood.
• Prime Locations – Many TICs are located in central, walkable areas.
• Flexible Ownership – Often found in 2–4 unit buildings, TICs are perfect for co-buyers such as friends, couples, or family members.

Until recently, the biggest hurdle was financing. Now, that barrier has been lifted.

The New TIC Loan: Just 15% Down, Up to $2 Million

Here’s why this program is a game-changer:

• Down Payments as Low as 15%. Keep more cash in your pocket while still qualifying for a high-value home.
• Loan Amounts Up to $2 Million. Ideal for San Francisco and Los Angeles, where home prices often exceed conventional loan limits.
• Bank Statement Loans for the Self-Employed. Qualify using 12–24 months of bank statements instead of tax returns. Great for business owners, freelancers, or anyone with non-traditional income.
• Investor-Friendly. Non-owner-occupied TIC purchases are allowed, perfect if you want to generate rental income.
• Credit Flexibility. Minimum FICO starting at 660, depending on down payment and other factors.

Who Can Benefit from This TIC Loan?

This program was designed to fit the needs of today’s buyers:

1. Self-Employed Borrowers. No W-2s? No problem. Qualify with bank statements.
2. Real Estate Investors. Buy TICs as investment properties with only 15% down.
3. First-Time Buyers & Young Professionals. Lower prices plus smaller down payments make ownership more attainable.
4. Co-Buyers. Flexible guidelines for couples, friends, or families purchasing together.

Why This TIC Program Stands Out

Feature	This TIC Loan Program	Traditional TIC Loans
Down Payment	As low as 15%	Typically 25–30%
Max Loan Amount	$2,000,000	Often capped at $1M
Self-Employed	Bank statements accepted	Tax returns required
Investor Loans	Allowed	Often restricted
Minimum Credit Score	660+	Usually 700+

 

How to Qualify

Here are the basics:

• Credit Score: As low as 660 (higher scores may be required for 15% down).
• Income Docs: W-2s, pay stubs, or 12–24 months of bank statements.
• Down Payment: 15%–30%, depending on credit and loan amount.
• Property Type: TIC units in 2–4 unit buildings.
• Location: Most common in San Francisco and Los Angeles.

5 Tips for Buying a TIC with This Loan

1. Work with an experienced TIC real estate agent.
2. Carefully review the TIC agreement. Look for details on occupancy rights and shared expenses.
3. Get preapproved early with a lender familiar with TICs.
4. Budget for shared costs like property taxes, insurance, and maintenance.
5. Ask about exit strategies. Some TICs may eventually be converted to condos.

Frequently Asked Questions About TIC Loans

1. What is a TIC loan? A TIC loan is financing specifically designed for Tenancy in Common properties, where multiple buyers share ownership of a building, but each has exclusive rights to occupy their own unit. Since TICs aren’t condos, they require specialized loan programs that not all lenders offer.

2. How much down payment do I need for a TIC loan in San Francisco or Los Angeles? With today’s programs, you can buy a TIC property with as little as 15% down (instead of the traditional 25–30%). This makes TIC ownership more affordable, especially in high-cost areas like San Francisco and Los Angeles.

3. Can self-employed buyers qualify for a TIC loan? Yes! Self-employed borrowers often struggle with traditional mortgages, but bank statement TIC loans allow you to qualify using 12–24 months of personal or business bank statements instead of tax returns.

4. Are TIC loans available for investors? Yes. Unlike many loan programs, non-owner-occupied TIC units are eligible. This makes TIC loans a smart option for real estate investors who want to generate rental income in San Francisco or Los Angeles.

5. What’s the maximum loan amount for a TIC loan? TIC loan programs in California now allow loan amounts up to $2 million, giving buyers access to larger units and premium neighborhoods.

6. What credit score do I need for a TIC loan? Borrowers may qualify with a minimum FICO score of 660, depending on down payment and loan terms. Higher scores may be required for the lowest down payment options.

7. Why are TICs cheaper than condos? TIC units are typically priced 10–20% lower than comparable condos because they require a shared ownership structure and specialized financing. This lower entry price makes TICs a great way to own in prime California neighborhoods.

8. Can TICs be converted into condos in the future? In some cases, yes. Certain TIC properties can be converted into condominiums down the line, depending on local regulations and agreements among co-owners. This can increase property value, but the process varies by city.

Final Thoughts: A Modern Path to Homeownership

TICs are no longer a niche option, they’re a smart, practical solution for buyers and investors in California’s hottest real estate markets. With financing options now allowing 15% down, up to $2 million loans, and flexible qualification guidelines, TICs are more accessible than ever.

Whether you’re self-employed, buying your first home, or investing in a rental property, this program could be the key to getting into San Francisco or Los Angeles real estate.

Ready to Explore TIC Financing? At Bridgepoint Funding, we specialize in unique lending solutions that help buyers succeed in California’s most competitive housing markets.

Let’s connect today and get you preapproved for a TIC loan in San Francisco or Los Angeles.