Pacaso secures $100M credit facility for first co-ownership mortgage in the US
What's the deal? Pacaso, the vacation home co-ownership platform, has introduced the first purpose-built, 30-year mortgage for co-ownership of second homes in the US. The product is backed by a $100M credit facility from Texas Capital.
The mortgage lets multiple buyers appear as co-borrowers on a single loan, each aligned to their ownership interest. It includes an interest-only period of up to five years, lowering early monthly payments.
"Second-home ownership is evolving. People are buying together, and they expect financing that matches that expectation with clarity and flexibility," said Austin Allison, Pacaso co-founder and chief executive officer.
Why now? Traditional mortgages were never designed for co-ownership structures, forcing buyers into legal workarounds or informal side agreements. In Pacaso's July 2025 consumer survey, one-third of respondents said difficulty securing financing is a top barrier to buying a vacation home. Among those open to co-ownership, 74% said flexible financing would be a key factor in moving forward.
Pacaso plans to roll out the product across US markets in Q4 2025. Originations are handled by a third party, and loans are subsequently sold to third-party investors.
What could go wrong? Co-ownership mortgages are untested territory. Having multiple borrowers on a single loan introduces complexity around defaults — if one co-owner stops paying, the others may be on the hook. The product also targets the non-qualified mortgage securitisation market, which carries higher risk profiles than conventional lending.
Pacaso hasn't disclosed financing counterparties or detailed terms, leaving questions about pricing and borrower protections unanswered for now.
The signal: This move taps into a $200B non-qualified mortgage securitisation market and reflects a broader shift in how people think about property ownership. As housing costs climb, fractional and co-ownership models are gaining traction — not just for vacation homes but across real estate more broadly. Institutional backing from a bank like Texas Capital suggests the financial establishment is starting to take these alternative ownership structures seriously, potentially opening the door for more bespoke lending products built around shared assets.
Read more: qubemark.com
