Fractional financing is a real estate investment structure that allows funding for multiple investors to collectively own a single property.
Fractional financing can take two forms: traditional timeshare ownership and larger share fractional ownership which is legally known as tenancy in common (TIC).
[1] Fractional mortgages for shares of 1/26 ownership or 2 weeks or fewer are considered timeshare financing, and is often provided initially by the project developers.
Fractional financing is more difficult for most lenders since there is a small market for these loans, and no established secondary market for vacation finance mortgages of these types.
Several companies make loans for fractional homes, yachts, planes and other properties.