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. I’ve been navigating SF condo financing for buyers since 2007. I’m Michael DiVita — DRE #01372066 | NMLS #241655, DiVita Home Finance (DRE #01818285 | NMLS #323700), Tiburon, CA. Call (800) 239-1103.

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 for conventional conforming financing. A warrantable condo qualifies for conforming or FHA loans at standard rates. A non-warrantable condo requires a portfolio 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 SF’s most desirable 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 making an offer. DiVita Home Finance checks warrantability at the start of every SF condo transaction.

Note on the 2026 conforming limit: the high-balance conforming limit for San Francisco County is $1,249,125. Even condos priced below this threshold can require portfolio/jumbo financing if the building is non-warrantable — the conforming limit and warrantability are separate issues.

TIC Financing in San Francisco

Tenancy-in-Common (TIC) is a 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 — 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, 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 making an offer, 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? Below 10% of annual dues raises lender red flags.
• Litigation status: Active or pending lawsuits against the HOA — even minor ones — can trigger non-warrantable status. Extremely common in older SF buildings.
• Owner-occupancy rate: Fannie Mae requires at least 50% owner-occupancy for most condo projects.
• Delinquency rate: More than 15% of owners 60+ days behind on HOA dues can disqualify the building 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 the right product.

New Construction Condos in San Francisco

New construction condo financing has additional requirements. Fannie Mae requires at least 50% of units under contract or sold before approving financing in a new project. Before that threshold is met, buyers often need the developer’s preferred lender or 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 the developer’s in-house lender can’t offer.

Frequently Asked Questions

Related Resources

• San Francisco Mortgage — Full Service Hub
• San Francisco Jumbo Loan Guide 2026
• SB 326 Condo Mortgage California
• Non-Warrantable Condo Mortgage California