Searching for SB 326 approved lenders in California? There is no official government list. SB 326 is a building inspection law, not a lender certification program. What you need is a mortgage broker with access to portfolio lenders who can finance condos regardless of their SB 326 status. DiVita Home Finance is that lender.
What Portfolio Lenders Can Do That Others Cannot
Most lenders sell loans to Fannie Mae or Freddie Mac, which have strict condo project eligibility standards. Buildings with unresolved SB 326 deficiencies do not qualify. Portfolio lenders hold loans in-house and set their own standards — they can approve SB 326-affected buildings case by case.
DiVita Home Finance has direct wholesale access to 12+ portfolio lenders who actively finance California condos with:
- SB 326 inspection still pending
- Deficiencies found with an active repair plan
- Special assessments outstanding for repairs
- Prior lender denial due to non-warrantable status
Standard vs. Portfolio Condo Financing
| Lender Type | SB 326 Compliant | Non-Compliant/Non-Warrantable |
|---|---|---|
| Conventional (Fannie/Freddie) | Full access | Cannot finance |
| FHA | With project approval | Cannot finance |
| VA | With project approval | Cannot finance |
| Portfolio lenders | Full access | Case-by-case approval |
What Portfolio Lenders Evaluate
- Inspection findings: Cosmetic vs. structural deficiencies are treated very differently
- Repair timeline: HOA actively working with a licensed contractor vs. no plan
- HOA reserves: Sufficient funds to complete repairs
- Litigation status: Active lawsuits significantly increase lender risk
- Buyer equity: More down payment equals more lender flexibility
Is there a list of lenders approved for SB 326 condos in California?
No official list exists. SB 326 is a building inspection law, not a lender certification program. You need a mortgage broker with portfolio lender access who will underwrite non-warrantable condos. DiVita Home Finance works with 12+ portfolio lenders who actively finance SB 326-affected buildings throughout California.
Why do most lenders refuse SB 326 non-warrantable condos?
Most lenders sell loans to Fannie Mae or Freddie Mac, which exclude buildings with SB 326 deficiencies, large special assessments, or pending litigation. Rather than hold the loan in portfolio, most lenders decline. DiVita Home Finance specifically sources portfolio lenders who will hold and service these loans for qualified buyers.
How much more does an SB 326 non-warrantable condo loan cost in California?
Expect 0.375%-0.875% higher in rate compared to a standard conforming loan. On a $700,000 loan, that is roughly $175-$400 per month more. Many buyers find this premium worthwhile when purchasing an SB 326-affected building at a 5%-15% discount to comparable compliant buildings nearby.
Talk to an SB 326 Mortgage Expert
DiVita Home Finance has helped California buyers close on SB 326-affected condos that other lenders declined. Apply online or call 800-239-1103.
Related Resources
- SB 326 Condo Mortgage California Complete Guide
- Non-Warrantable Condo Mortgage Options
- HOA Special Assessment Financing
- SB 326 Los Angeles Condo Mortgage
About DiVita Home Finance
DiVita Home Finance is a small, family-owned mortgage company based in Marin County, California. When you call, you speak directly with Michael DiVita — the owner — not a call center, not an out-of-state rep, not someone reading from a script. We’re here for a low-key, no-obligation conversation about your situation.
We take your privacy seriously. We will never sell your information to third-party lenders or lead generation companies — unlike many of the large mortgage platforms. Your inquiry stays with us, period.
📞 Call: (800) 239-1103 | 💬 Text Michael directly: (310) 849-9124
