Vacation home co-ownership platform Pacaso says it will enter the mortgage business with a “bespoke” 30-year mortgage that lets multiple buyers sign on as co-borrowers.
San Francisco-based Pacaso says it will offer what it’s calling a “first-of-its-kind” co-ownership mortgage sometime in the fourth quarter, after securing a $100 million credit facility with Texas Capital Bank that runs through August 2027. Loans are originated by a third-party and will be securitized and sold to investors in non-qualified mortgages.
The new mortgage product and $100 million credit facility give Pacaso access to the $200 billion “non-QM” securitization market, the company said Tuesday.
Austin Allison
“We didn’t pull this off the shelf,” Pacaso co-founder and CEO Austin Allison said, in a statement. “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.”
Pacaso says its surveys show securing financing is a top obstacle for one-third of people buying vacation homes, and that flexible financing would be key to 74 percent of those open to co-ownership. Financing terms will include an interest-only period of up to five years
“This feedback highlights a specific market gap that this mortgage product is designed to address,” the company said.
Pacaso saw its net loss for the first half of the year swell by 62 percent, to $22.3 million, as the total dollar value of real estate transactions fell 20 percent, to $57.1 million, the company said in a 2025 semiannual report filed on Sept. 12.
The report notes that Pacaso has raised $39.5 million in a Regulation A offering of up to 28.96 million shares of Class D common stock that closes on Sept. 18.
Pacaso announced in July an additional tender offer to raise up to $25 million under Rule 506(c) of Regulation D. That offering has raised $200,000 through Sept. 8, the company said in its semiannual report.
Pacaso tells investors they could see a return if the company goes public or is acquired. Pacaso has reserved the Nasdaq ticker PCSO, but warns that “is not a guarantee that the company will go public.”
Last week was the strongest market for IPOs in four years, the Financial Times reported, with buy now, pay later (BNPL) provider Klarna and cryptocurrency exchange Gemini among the large-cap companies making headlines.
Blockchain-based home equity lender Figure Technology Solutions‘ market capitalization surpassed $8.6 billion Tuesday following strong investor demand for its shares in a Sept. 12 IPO.
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