Thank you for a great question. This is very common in our area. I have contacted one of our local lenders, O'Dette Mortgage Group, regarding this question to see what the pro says. Please read her response below. Teresa has offices in Lake Tahoe and San Francisco. Please contact her for your lending needs. If we can be of further assistance helping you find your dream home, do not hesitate to contact us. We are always here to help and strive to exceed your expectations.
Regarding 2 families purchasing, the financing is typically a standard Fannie Mae loan as all 4 parties are liable for the mortgage. The TITLE to the property is typically held as â€˜tenants-in commonâ€™ with 50/50, or whatever percentage of ownership the parties agree to.
The â€˜TICâ€™ financing you see in San Francisco is a non-conventional â€˜space-based fractionalâ€™ type of loan that offers 3- and 5-year terms with much higher rates. Fortunately you do not have to go down that path, but can take advantage of the great rates available in this market.
I would be happy to talk with your clients about all of the options. We have assisted MANY clients with this scenario.