E-LOAN Announces Individual Tenancy-in-Common Financing
Pleasanton, CA -- E-LOAN®, an online consumer financial services company, has announced the launch of its individual Tenancy-In-Common financing to help those consumers living in high rent markets more fully participate in the American Dream. With E-LOAN’s new individual TIC loan, borrowers can finance a fractional ownership in residential real estate without the risks commonly associated with a group TIC loan. Immediately available to borrowers looking to purchase a Tenancy-In-Common ownership in California, the company plans to eventually extend the financing option to consumers throughout the West Coast and then across the nation.
“As the lack of affordable housing continues in high rent markets such as San Francisco, San Diego, Seattle and the East Coast, many borrowers are prohibited from participating in the financial and emotional benefits of home ownership,” said Mark Lefanowicz, president of E-LOAN. “E-LOAN has once again created a product that exceeds conventional standards with an innovative TIC financing offering that considers the needs of the individual borrowers who are entering into a major multiparty agreement. This is an entirely new approach to the TIC market and will help spur additional home purchases.”
While the real estate market has been experiencing a nationwide downturn, high rent markets continue to present a barrier to affordable housing for many would-be homeowners looking to enter the housing market. In recent years, the TIC structure has become a popular way for these buyers to pool their resources and buy more real estate than they could afford on their own. However, traditional TIC offerings require that the loan be made collectively to all members of the Tenants-In-Common agreement, and secured by all of the TIC members’ interests in the property. This means that each individual TIC member is vulnerable to the actions or inactions of the other TIC members. Since E-LOAN Individual TIC loans do not require any other Tenant-In-Common members to co-sign on the same loan, borrowers are not tied as closely to the other TIC members, thereby reducing their risk and mutual financial dependence. An E-LOAN Tenancy-In Common mortgage can also be used to refinance existing TIC real estate holdings.