California passed two major condo safety laws: SB 326 and SB 721. Both require inspections of elevated exterior elements, but they apply to different building types and create different mortgage challenges.
SB 326 vs. SB 721: Key Differences
| Feature | SB 326 | SB 721 |
|---|---|---|
| Applies to | HOA-governed condominiums | Rental apartments (3+ units) |
| Who orders inspection | The HOA | Building owner/landlord |
| Initial deadline | January 1, 2025 | January 1, 2025 |
| Reinspection cycle | Every 9 years | Every 6 years |
| Repair deadline | 180 days from notice | 120 days from notice |
| Mortgage impact | High — affects condo warrantability | Moderate — affects investment valuations |
SB 326: The Law That Affects Condo Buyers
If you are purchasing a unit in an HOA-managed condominium, SB 326 is the law that governs your mortgage eligibility. Non-compliance puts the building at risk of losing warrantable status, restricting financing to portfolio programs with higher rates and larger down payments.
SB 721: The Law That Affects Landlords
SB 721 applies to rental apartment buildings owned by a single landlord with 3 or more units. It does NOT directly affect condo mortgage financing. If you are buying an investment apartment building, SB 721 compliance affects property condition and appraised value.
Does SB 721 affect my ability to get a condo mortgage?
No. SB 721 applies to rental apartment buildings, not HOA condominiums. If you are buying a condo governed by an HOA, SB 326 is the relevant law for your mortgage eligibility. SB 721 only affects investment apartment buildings with 3 or more rental units.
What should condo buyers ask about SB 326 before making an offer?
Ask the HOA management: (1) Has the SB 326 inspection been completed? (2) Was a compliance certificate issued? (3) Are any repairs outstanding with a defined timeline? (4) Has the HOA levied any special assessments for SB 326 repairs? These four questions reveal your financing options before your offer becomes binding.
Which California condo law has a bigger impact on mortgage financing in 2026?
SB 326 has the larger direct impact because it affects millions of California condo units. Buildings that do not comply lose warrantable status, forcing buyers into non-warrantable loan programs. SB 721 impact is concentrated in the multi-family investment sector and does not affect condo buyer financing.
Talk to a Condo Mortgage Specialist
DiVita Home Finance finances condos affected by SB 326 across California. Apply online or call 800-239-1103.
Related Resources
- SB 326 Condo Mortgage California Guide
- Non-Warrantable Condo Mortgage Options
- Fannie Mae August 2026 Condo Rule Change
Related Reading
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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
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
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
