Pacaso unveils 30-year mortgage for vacation home co-ownership

Pacaso on Tuesday announced the launch of the first purpose-built, 30-year mortgage designed for co-ownership of vacation homes in the U.S.

The new financing option gives qualified buyers and existing Pacaso owners a standardized way to finance their share of a second home, with a simplified closing process. The product is backed by a $100 million credit facility from Texas Capital.

“Second-home ownership is evolving. People are buying together, and they expect financing that matches that expectation with clarity and flexibility. This innovative mortgage product in combination with the $100M facility further cements our position as an industry leader and frontrunner in the co-ownership space,” said Austin Allison, CEO and co-founder of Pacaso, said in a statement.

‘”We didn’t pull this off the shelf. We co-developed a bespoke solution with a client-obsessed bank well-versed in the securitization and home lending space, tailored it to our model, and made it available exclusively to Pacaso homeowners.”

The San Francisco-based company developed the mortgage product in partnership with Texas Capital after recognizing that traditional financing options do not support modern co-ownership structures. The framework allows multiple buyers to appear as co-borrowers on a single loan, aligned with their ownership interests.

The loan terms include an interest-only period of up to five years that’s aimed at lowering initial monthly payments. By consolidating co-borrowers under a single origination, the product eliminates the need for legal workarounds or side agreements.

In a July 2025 Pacaso survey, one-third of respondents said that difficulties securing financing was 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 said it expects to roll out the financing across U.S. markets in the fourth quarter of 2025. Originations will be conducted by a third party, with the loans later sold to investors. The company did not disclose financing counterparties or terms.

“Combined with Pacaso’s strong track record, partnership with Texas Capital on this unique product signals further institutional confidence and paves the way for access to the capital markets for co-ownership financing solutions,” said Sam Palazzolo, vice president and head of capital markets at Pacaso.

“This facility and the bespoke program it facilitates strengthens our capacity to offer our high-credit worthy consumers a familiar, end-to-end financing solution while we keep the experience simple. This product is built specifically for how modern owners want to finance their ownership of a second home.”