Los Angeles County has more SB 326-affected condominium buildings than anywhere else in California. With thousands of older HOAs that missed the 2025 inspection deadline — or completed inspections that revealed structural deficiencies — LA condo buyers and owners face unique mortgage challenges in 2026. DiVita Home Finance specializes in financing condos impacted by SB 326 across Los Angeles.
Why SB 326 Hits LA Condos Hardest
Los Angeles has an enormous stock of 1970s–1990s condominium buildings — the exact era that SB 326 targets. Buildings with elevated walkways, balconies, decks, stairways, and exterior elevated elements (EEEs) that were built before modern seismic and material standards are the primary focus of SB 326 inspections.
Key LA markets heavily affected:
- West Hollywood: Dense condo inventory, many buildings 30–50 years old
- Venice / Mar Vista: Older beachside stock with wood-frame balconies
- Silver Lake / Echo Park: 1970s–80s hillside condos with exterior walkways
- Downtown LA / South Park: Converted lofts and older mid-rise buildings
- Koreatown: High-density older stock where many HOAs delayed inspections
- Mid-Wilshire / Miracle Mile: Pre-war and 1960s–70s converted apartments
SB 326 Mortgage Options for LA Condo Buyers in 2026
Non-Warrantable Condo Loans
If an LA building has a pending SB 326 inspection, failed inspection, or has not yet filed a compliance certificate, Fannie Mae and Freddie Mac will not purchase the loan — making it “non-warrantable.” DiVita Home Finance has direct access to portfolio lenders who will finance these condos:
- Down payment: 10%–25% depending on building status
- Loan amounts up to $3M for LA’s higher price points
- Credit score: 680+ minimum
- Rates typically 0.375%–0.875% above standard conforming
HOA Special Assessment Financing
If your LA condo HOA has levied a special assessment to fund SB 326 repairs, you may be able to finance that assessment into your purchase loan or as a separate personal loan:
- Personal loans up to $100,000 for assessment amounts
- Some portfolio lenders allow assessment to be financed into mortgage
- Seller concession toward assessment is negotiable
LA Condo Buyer Strategy: SB 326 Buildings
- Verify HOA compliance status before making an offer — ask the listing agent for the SB 326 inspection certificate or status letter
- Get a non-warrantable pre-approval if the building has any open items — this protects you if the standard lender falls through at underwriting
- Negotiate a price discount — SB 326 uncertainty creates negotiating leverage for buyers
- Request the reserve study — LA HOAs with deferred maintenance often have underfunded reserves
SB 326 LA Condo Mortgage FAQ
Can I get a mortgage on an LA condo that failed SB 326 inspection?
Yes, through portfolio (non-warrantable) condo lenders. If the building failed its SB 326 inspection or has an active repair plan, conventional Fannie/Freddie lenders will decline. DiVita Home Finance accesses portfolio lenders who evaluate these buildings case-by-case and can approve financing with 15%–25% down for qualified buyers.
How do I find out if an LA condo building is SB 326 compliant?
Request the HOA’s SB 326 inspection certificate or compliance letter from the listing agent or HOA management company. Buildings that completed inspections with no deficiencies will have a signed certificate from a licensed structural engineer. Buildings with deficiencies will have an inspection report and (ideally) a repair timeline. If neither exists, the building may not have begun the process.
Does SB 326 affect condo prices in Los Angeles?
Yes, in many cases. LA condos in buildings with open SB 326 issues — particularly those with looming special assessments or failed inspections — are selling at 5%–15% discounts compared to compliant buildings in the same neighborhood. For buyers with access to non-warrantable financing, this creates a buying opportunity.
Get Financing for Your LA Condo
DiVita Home Finance has financed dozens of SB 326-affected condos across Los Angeles. We’ll tell you upfront whether your building qualifies for standard financing or needs a portfolio solution. Apply online or call 800-239-1103.
Related Resources
- SB 326 Condo Mortgage — California Guide
- Non-Warrantable Condo Mortgage Options
- HOA Special Assessment Condo Financing
- Los Angeles Mortgage Broker
- Jumbo Loans California
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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.
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