Pacaso Launches Innovative Co-Ownership Mortgage for Vacation Homes

Pacaso has made a significant leap in the real estate sector by introducing an innovative mortgage solution designed specifically for the co-ownership of vacation homes in the United States. The company announced the closure of a new $100 million credit facility that will enable access to a vast market with $200 billion in non-qualified mortgage securitization. This move highlights Pacaso's commitment to transforming the second-home ownership landscape.

Austin Allison, co-founder and CEO of Pacaso, emphasizes that second-home ownership is evolving, with more buyers interested in co-ownership arrangements. Traditional mortgage products have not adapted well to this modern trend, often creating confusion and barriers for potential buyers. Recognizing these challenges, Pacaso teamed up with Texas Capital, a client-focused bank experienced in home lending and securitization, to develop a mortgage solution tailored to the needs of modern co-owners.

Tailored Financing Solution

The newly launched mortgage is a 30-year product designed specifically for the unique requirements of co-ownership. Unlike conventional mortgages, which are typically structured for sole ownership, the Pacaso mortgage allows multiple buyers to be listed as co-borrowers aligned with their ownership interests. This structure eliminates the need for complex legal arrangements and informal side agreements, providing a streamlined approach to co-ownership financing.

Key features of the Pacaso mortgage include an interest-only period of up to five years, allowing for lower monthly payments in the initial years. This flexibility is particularly appealing for individuals interested in entering the vacation home market without the burden of traditional mortgage constraints.

Addressing Market Needs

According to a national consumer survey conducted by Pacaso in July 2025, securing financing is a significant barrier for one-third of respondents looking to purchase a vacation home. Among those interested in co-ownership, a staggering 74% indicated that flexible financing options would be a crucial factor in moving forward with a purchase. These insights have shaped the development of the Pacaso mortgage, addressing a clear gap in the market.

With plans to roll out the new mortgage product across U.S. markets by the end of Q4 2025, Pacaso is set to make a substantial impact on the co-ownership sector. The loan origination process will be handled by a third-party entity, and the resulting loans will be sold to external investors, although specific details regarding financing counterparties remain undisclosed at this time.

Building Institutional Confidence

The partnership with Texas Capital not only allows Pacaso to offer an innovative mortgage solution but also enhances institutional confidence in its business model. This alignment with a reputable financial institution positions Pacaso as a frontrunner in the co-ownership market. Sam Palazzolo, Vice President and Head of Capital Markets at Pacaso, highlights how this bespoke mortgage framework strengthens the company’s ability to provide high-creditworthy consumers with familiar financing options while simplifying the overall experience.

About Pacaso

Founded in 2020, Pacaso aims to modernize and simplify co-ownership in the luxury real estate market. The company curates remarkable properties in prestigious locations across the U.S. and internationally, offering luxurious amenities and expert design. Beyond just facilitating co-ownership, Pacaso manages properties, ensures high-quality maintenance, and provides customized service to its clients.

In conclusion, Pacaso's introduction of a dedicated co-ownership mortgage signifies a promising shift in the real estate landscape, catering to a growing demand for flexible and clear financing options in the vacation home market.