Key Differences Between TICs and Condominiums

The most important difference between condos and TICs is the availability and quality of financing.

Because the total dollar volume of TIC loans remains relatively small, there is still no secondary market for them. This means lenders must hold these loans in their portfolio, a fact that has kept many banks on the sidelines. Other banks have concluded that the relatively small market for TIC loans does not justify the costs of developing a program. The bottom line is that even though TIC loans have a lower rate of default and a higher yield than condo loans, there are currently only four lenders offering them.

READ MORE