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San Francisco Mortgage FAQ
Buying a home in San Francisco requires understanding unique mortgage options. Our guide answers your most important questions about financing property in this competitive market.
From conventional loans to jumbo financing, we cover loan types available to San Francisco buyers. Whether you're a first-time buyer or seasoned investor, find answers here.
Navigate the San Francisco mortgage process with confidence. Learn about qualification requirements, costs, and which loan programs fit your financial situation best.
San Francisco buyers can access 25+ loan programs including conventional, FHA, VA, and jumbo loans. Specialized options include bank statement loans, DSCR loans, and foreign national loans for unique situations.
Many San Francisco homes exceed conforming loan limits, requiring jumbo financing. Jumbo loans handle higher purchase prices common in the city. Rates vary by borrower profile and market conditions.
Minimum credit scores vary by loan type. FHA loans may accept scores as low as 580, while conventional loans typically require 620 or higher. Jumbo loans often need 700+.
Down payments range from 0% for VA loans to 3% for some conventional loans. Jumbo loans typically require 10-20% down. Higher down payments may secure better rates.
Conforming loans meet guidelines set by Fannie Mae and Freddie Mac. They have specific loan amount limits and qualification standards. These loans often offer competitive rates.
Jumbo loans exceed conforming loan limits set by federal agencies. They're common in San Francisco due to high property values. Credit and income requirements are typically stricter.
Yes, self-employed buyers have multiple options including bank statement loans and profit & loss statement loans. These programs use alternative income documentation instead of W-2s.
Bank statement loans verify income through deposits rather than tax returns. They're ideal for self-employed borrowers or business owners. Typically 12-24 months of statements are required.
DSCR loans qualify investors based on rental property income, not personal income. The debt service coverage ratio measures if rent covers the mortgage payment. No tax returns needed.
Yes, eligible veterans and service members can use VA loans in San Francisco. VA loans offer 0% down payment and no mortgage insurance. Funding fees may apply.
FHA loans are available in San Francisco with as little as 3.5% down. They accept lower credit scores than conventional loans. Mortgage insurance is required for the loan life.
Conventional loans offer flexible terms and competitive rates. Mortgage insurance can be removed once you reach 20% equity. They work well for buyers with strong credit.
ARMs have interest rates that adjust periodically after an initial fixed period. They often start with lower rates than fixed mortgages. Rates vary by borrower profile and market conditions.
Portfolio ARMs are held by lenders rather than sold to agencies. They offer more flexible qualification criteria. These may suit borrowers who don't fit traditional guidelines.
Yes, foreign national loans are available for non-U.S. citizens. These programs don't require U.S. credit history or Social Security numbers. Larger down payments are typically required.
ITIN loans serve borrowers without Social Security numbers who have tax IDs. They allow immigrants to purchase homes in San Francisco. Documentation requirements differ from traditional loans.
Bridge loans provide short-term financing between buying and selling properties. They help buyers purchase before selling their current home. Interest rates are typically higher than traditional mortgages.
Hard money loans are short-term, asset-based financing for investors. Approval focuses on property value rather than credit. They're useful for fix-and-flip projects or quick closings.
Interest-only loans let you pay just interest for an initial period. Monthly payments are lower during the interest-only phase. Principal payments begin after the initial term ends.
Closing costs typically range from 2-5% of the purchase price. They include appraisal fees, title insurance, and lender charges. Exact amounts vary by loan type and property.
Points are upfront fees paid to lower your interest rate. One point equals 1% of the loan amount. Buying points can reduce long-term interest costs.
Mortgage insurance is required on conventional loans with less than 20% down. FHA loans require mortgage insurance regardless of down payment. VA loans don't require mortgage insurance.
HELOCs let you borrow against your home equity as needed. They work like credit cards with revolving credit limits. Interest rates are typically variable.
Home equity loans provide lump-sum funding secured by your home equity. They have fixed interest rates and predictable monthly payments. Useful for large expenses or debt consolidation.
Construction loans finance building or major renovation projects. They convert to permanent mortgages after construction completes. Requirements are stricter than traditional purchase loans.
Investor loans finance rental properties or investment real estate. Qualification considers both personal income and rental income potential. Down payments are typically higher than primary residence loans.
Asset depletion loans qualify borrowers based on liquid assets rather than income. Lenders calculate monthly income by dividing total assets by loan term. Ideal for retirees or high-net-worth individuals.
1099 loans serve independent contractors who receive 1099 forms instead of W-2s. They use 1099 income for qualification without full tax returns. Perfect for gig workers and freelancers.
Reverse mortgages allow homeowners 62+ to convert home equity into income. No monthly payments are required while living in the home. Loan is repaid when you move or pass away.
USDA loans serve eligible rural and suburban areas with 0% down payment. San Francisco proper typically doesn't qualify as a USDA-eligible area. Check specific address eligibility with your lender.
Traditional loans require W-2s, pay stubs, and tax returns. Alternative programs accept bank statements, 1099s, or asset documentation. Required documents depend on your chosen loan program.
Pre-approval typically takes 1-3 days with complete documentation. Full approval and closing usually require 30-45 days. Timeline varies based on loan complexity and appraisal scheduling.
Yes, rate locks protect your quoted rate during the loan process. Lock periods typically range from 30-60 days. Rates vary by borrower profile and market conditions.
Debt-to-income ratio compares monthly debt payments to gross monthly income. Most programs require ratios below 43-50%. Lower ratios improve approval odds and may secure better rates.
Pre-approval is highly recommended in San Francisco's competitive market. It shows sellers you're a serious buyer with verified financing. Pre-approval strengthens your offer against competing bids.
Most loan programs cover single-family homes, condos, and multi-unit properties. Investment properties and mixed-use buildings have specific loan requirements. Property type affects available loan options.
Mortgage financing for independent contractors and freelancers who earn 1099 income instead of traditional W-2 wages.
Mortgage programs that allow borrowers to qualify based on liquid assets rather than traditional employment income.
Non-QM loans that use 12 to 24 months of bank statements to verify income for self-employed borrowers.
Short-term financing that bridges the gap between buying a new property and selling an existing one.
Debt Service Coverage Ratio loans that qualify investors based on a rental property's income rather than personal income.
Mortgage programs designed for non-US citizens and non-permanent residents who want to purchase property in the United States.
Asset-based short-term loans primarily used by real estate investors for property acquisition and renovation projects.
Mortgages that allow borrowers to pay only the interest for an initial period, resulting in lower monthly payments upfront.
Financing solutions tailored for real estate investors purchasing rental properties, fix-and-flip projects, or investment portfolios.
Home loans for borrowers who have an Individual Taxpayer Identification Number instead of a Social Security number.
Adjustable rate mortgages held in a lender's portfolio rather than sold on the secondary market, offering more flexible terms.
Non-QM mortgages that use a CPA-prepared profit and loss statement to verify income for self-employed borrowers.
Home loans with interest rates that adjust periodically based on market conditions after an initial fixed-rate period.
Specialized mortgage programs designed to support homeownership in underserved communities with flexible qualification criteria.
Mortgages that meet the guidelines and loan limits set by Fannie Mae and Freddie Mac for secondary market purchase.
Financing for building a new home or making major renovations, typically converting to a permanent mortgage upon completion.
Traditional mortgage financing not backed by a government agency, offering flexible terms and competitive rates for qualified borrowers.
Innovative loan products that leverage projected home equity growth to provide favorable financing terms.
Government-insured mortgages from the Federal Housing Administration with low down payments and flexible credit requirements.
A revolving line of credit secured by your home equity that allows you to borrow funds as needed during a draw period.
A fixed-rate second mortgage that provides a lump sum of cash by borrowing against the equity built in your home.
Mortgages that exceed the conforming loan limits set by the FHFA, designed for financing high-value luxury properties.
Loans for homeowners aged 62 and older that convert home equity into cash without requiring monthly mortgage payments.
Government-backed zero down payment mortgages for eligible rural and suburban homebuyers who meet income limits.
Government-guaranteed mortgages for eligible veterans, active-duty service members, and surviving spouses with zero down payment.