Buying a Condo in San Francisco: Mortgage Guide for 2026
San Francisco has one of the largest and most diverse condo markets in California — from Edwardian flats in the Mission to glass-and-steel high-rises in SOMA and Rincon Hill. But financing a condo in SF requires understanding a layer of complexity that doesn’t exist with single-family homes: warrantability, HOA financial health, building litigation, and in some cases the unique TIC (Tenancy-in-Common) ownership structure. This guide explains everything you need to know about getting a San Francisco mortgage for a condo purchase in 2026.
Warrantable vs. Non-Warrantable SF Condos
The most important concept in SF condo financing is warrantability — whether the building meets Fannie Mae and Freddie Mac guidelines to be eligible for conventional conforming financing. A warrantable condo can be financed with conventional or FHA loans at standard rates. A non-warrantable condo requires a portfolio jumbo lender, typically at slightly higher rates.
A San Francisco condo is typically non-warrantable if any of the following apply:
- More than 35% of units are investor-owned (non-owner-occupied)
- The HOA has active or pending litigation (extremely common in SF)
- HOA budget reserves are below 10% of annual assessments
- Commercial space exceeds 35% of the building’s total square footage
- Any single entity owns more than 10% of units
- The building operates as a hotel, timeshare, or condotel
Many of San Francisco’s most desirable condo buildings — particularly larger SOMA towers, mixed-use buildings near Union Square, and older buildings in litigation over construction defects — are non-warrantable. This doesn’t mean they can’t be financed. It means you need a lender with portfolio products, and you need to know this before you make an offer.
TIC Financing in San Francisco
Tenancy-in-Common (TIC) is a unique form of ownership where multiple buyers each own a fractional share of a building (rather than a specific unit). TICs are common in SF as a workaround for condo conversion restrictions, and they typically sell at a discount to condos — making them one of SF’s most accessible entry points.
TIC financing is entirely different from condo financing. Because you’re financing a fractional ownership share rather than a discrete unit, standard mortgage products don’t apply. TIC loans are portfolio products held by a small number of SF-focused lenders. Key characteristics: higher rates than conforming (typically 6.5–7.5%+ in 2026), 20–25% down payment requirements, and loan amounts based on your ownership percentage of the building’s total value. DiVita Home Finance has relationships with TIC lenders and can help you navigate the process.
HOA Due Diligence for SF Condo Buyers
Before you make an offer on an SF condo, your lender will order an HOA questionnaire to assess the building’s financial health and legal status. Key items we examine:
- Reserve study: Is the HOA adequately funded for major repairs? Buildings with reserves below 10% of annual dues raise red flags for lenders.
- Litigation status: Any active or pending lawsuits against the HOA — even minor ones — can trigger non-warrantable status. This is extremely common in older SF buildings.
- Owner-occupancy rate: What percentage of units are owner-occupied vs. rented? Fannie Mae requires at least 50% owner-occupancy for most condo projects.
- Delinquency rate: If more than 15% of owners are more than 60 days behind on HOA dues, the building may not qualify for conventional financing.
We check all of these before you spend time and money on inspections and appraisals. If a building is non-warrantable, we can often still finance it — we just need to use the right product.
New Construction Condos in San Francisco
New construction condo financing in SF has additional requirements. Fannie Mae requires at least 50% of units to be under contract or sold before they’ll approve financing in a new project. Before that threshold is met, buyers in new construction projects often need to use the developer’s preferred lender or find a portfolio lender willing to finance in an unapproved project. We work with lenders who specialize in new construction condo financing and can often find solutions that the developer’s in-house lender can’t offer.
For a full overview of all San Francisco mortgage programs — from jumbo loans to TIC financing — visit our San Francisco mortgage hub page. Ready to get started? Apply online or call us at 800-239-1103.
