TIC loans in San Francisco: financing, Redwood Credit Union, and lessons from Birch Street

Redwood public down-payment benchmark

20%

Confirm current property and borrower requirements [1]

Advertised Redwood loan amount

Up to $2M

Public program limit reviewed October 22, 2026 [1]

Core file components

Agreement + budget

Insurance and loan documents must align too

Data: Public lender information reviewed October 22, 2026. MLS sales context through October 22, 2026, extracted October 23.

Can you get a mortgage on a TIC in San Francisco?

Yes. A tenancy-in-common home can be financed with an individual fractional TIC loan, provided the lender accepts the borrower, property, ownership structure, and agreement. Redwood Credit Union is one lender offering a dedicated TIC program in the Bay Area. The important question is not only whether you qualify for a mortgage, but whether the legal and financial pieces of this particular TIC work together. [1]

With a TIC, your deed conveys an undivided percentage interest in the property. A separate co-ownership agreement assigns the right to occupy a particular home and use designated spaces. You are not buying a separately subdivided condominium parcel. A fractional loan is secured against the borrower’s interest, while a group loan places shared debt over the property. [2]

The TIC sales context behind a loan decision

TIC sales, 2026 YTD

234

January 1–October 22 [M]

Median TIC price

$1,243,000

Citywide sold sample [M]

Median TIC days on market

17

Full-year 2025 median was 38 days [M]

The aggregated SFAR MLS series puts 2026 YTD TIC median price per square foot at $1,083, versus $1,124 for condos. A narrower aggregate price gap increases the importance of comparing the full payment, fees, down payment and shared building expenses. It does not show that a particular TIC has the same value or loan terms as a condo. [M]

Redwood Credit Union’s TIC program

As reviewed October 22, 2026, Redwood Credit Union’s public TIC page states a 20% down-payment requirement and loan amounts up to $2 million. Those figures describe the advertised program, not a promise of approval or a quote for a particular building. Ask Redwood to confirm eligible locations, membership requirements, occupancy, loan-to-value limits, reserves, and the available product for your property. [1]

Do not substitute a generic mortgage rate for a written TIC quote. Get the interest rate, APR, points, lender fees, lock period, amortization, adjustment terms, and any prepayment provisions for the actual loan. A public example for a different property or loan scenario may not describe your TIC financing.

What our Birch Street process taught us

At 527–529 Birch Street, the financing work involved both the sale of one TIC interest and refinancing the retained interest. Redwood required the retained-interest refinance to close concurrently with the other unit’s sale. That made the refinance, sale, and escrow sequence one coordinated plan rather than two independent calendars.

The initial lender checklist requested the TIC agreement, master insurance, an individual HO-6 policy, and an estimated budget. A follow-up clarified that the budget needed to show the dues breakdown for both units. Conditional approval later required an itemized allocation of each co-owner’s share. The lesson is simple: “the dues are about this much” is less useful than a budget the lender can reconcile to the agreement.

A TIC resale also requires an organized loan-payoff process. Escrow requested signed authorization to obtain a formal payoff demand from Redwood. An online balance or portal payoff request did not replace escrow’s need to obtain the lender’s closing instructions. Build this task into the resale calendar, even when the financing itself is already in place.

Read the financing provisions of the TIC agreement

A lender’s interest extends beyond the floor plan. Article 9 of the Birch agreement addresses liens and mortgage protections. It permits an encumbrance solely against an owner’s interest under specified conditions and prohibits a blanket lien on the entire property. That is a feature of this agreement, not a statement that every TIC agreement has identical restrictions.

The same section calls for institutional financing to be assumable by a reasonably qualified successor under the lender’s underwriting guidelines and for a reasonable fee. Treat that as an item to reconcile with the actual loan documents. Do not advertise an assumable loan or promise an existing rate to a future buyer merely because the co-ownership agreement uses that language. Obtain lender confirmation of the loan-specific rights, qualification requirements, and process.

Separate loans do not eliminate shared-building risk. Taxes, insurance, roof repairs, water bills, and co-owner governance can still affect everyone. Article 10 of the Birch agreement contains default procedures, including serious remedies. Buyers should understand how overdue common expenses are handled, not only whether another owner’s mortgage is technically separate.

How much cash do you need?

Start with the price of the TIC interest you are buying, rather than multiplying a percentage of the entire building’s price without checking the contract and valuation. On a hypothetical $1 million interest purchase, a 20% down payment is $200,000 and the starting loan balance is $800,000. That arithmetic is not an underwriting decision.

• Down payment: confirm the lender’s requirement for the actual property, occupancy, and borrower.
• Closing costs and prepaids: obtain the Loan Estimate and clarify appraisal, title, escrow, insurance, and tax funding.
• Shared operating and maintenance reserves: review the group budget and distinguish those funds from lender-required personal reserves.
• Repair and assessment exposure: check planned work, deferred maintenance, and how special assessments are allocated.
• Cash remaining after closing: model a buffer alongside the lender’s documented reserve requirement.

Compare the full payment and understand an ARM

The mortgage payment is only part of the monthly cost. Add the allocated property taxes, building insurance, individual insurance, dues, utilities, and maintenance that apply. Check the budget carefully so a cost already collected through dues is not counted a second time. Birch’s lender specifically requested the allocation for both units, which is why that reconciliation belongs near the start of underwriting.

If the quoted product is an adjustable-rate mortgage, ask how long the initial rate lasts and how often it can change afterward. For a typical 3/6 ARM, the initial period is three years and subsequent adjustments occur every six months; confirm the note’s exact terms. The reset rate generally uses an index plus a contractual margin, subject to caps and other provisions. Review the initial, later, and lifetime adjustment limits, as well as any rate floor. [3, 4]

Do not rely on being able to refinance before the first adjustment. A future refinance depends on eligibility, income, credit, valuation, the property, and the loans available at that time. Ask the lender to show the payment under its permitted adjustment terms, then test your own budget against that exposure.

Build the closing calendar before agreeing to a date

Our Birch experience makes a useful distinction between a loan being conditionally approved and a transaction being ready to fund. A checklist can still contain budget, insurance, appraisal, documentation, and disclosure items. Confirm which conditions block the next milestone, who is responsible, and how the sale and any related refinance depend on one another.

For covered mortgage transactions, the Closing Disclosure generally must be received at least three business days before consummation. That review period is different from a right to rescind after certain refinances secured by a principal dwelling. Rescission has exceptions and its own timing rules; it is not a general three-day cancellation right for a home purchase. Ask the lender and escrow team to calculate both requirements for each leg of a concurrent transaction. [5, 6]

• Is this a purchase, refinance, or coordinated sale and refinance, and what must close together?
• Has the lender accepted the final TIC agreement and any amendments?
• Are the appraisal, building coverage, individual policy, and dues allocation cleared?
• Have the relevant disclosures been received, and are the applicable waiting periods satisfied?
• What payoff or release instructions must escrow receive before funding and recording?
• After closing, who handles servicing access, autopay, taxes, insurance renewals, and shared-budget administration?

Questions to ask Redwood or another TIC lender

• Will you finance this exact TIC interest and agreement, and what borrower and property conditions apply?
• What are the required down payment, loan limits, reserve balances, and occupancy conditions?
• Which products are available, and what do their APR, fees, adjustment provisions, and rate locks mean for my plans?
• What insurance and budget documents do you require from the TIC group?
• Do the loan documents permit assumption, and how would a qualified buyer apply?
• How do you handle a retained-interest refinance alongside the first TIC sale?
• What must happen before a resale, agreement amendment, or future condominium conversion?

A useful TIC comparison puts the home, agreement, financing, and ongoing budget on the same page. We can help organize those property questions and coordinate with a TIC lender, attorney, and escrow team. Bring the agreement and the proposed loan terms before committing to a closing schedule.