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FHA financing, San Francisco 2026
San Francisco FHA Loans
A San Francisco FHA loan can go as high as the 2026 limit of $1,249,125, but the city’s house median is $2,000,000. FHA will not buy a typical house here, and pretending otherwise wastes your time. Where it does work is in the condo markets with medians under about $1 million and in a short list of southeast and southern neighborhoods where houses still sell near the conforming limit.
See if FHA fits FHA rates today
Where San Francisco FHA Loans Fit, and Where They Do Not
At the minimum 3.5% down, the limit supports a price up to about $1,294,000. The SF MLS medians for the 12 months ending October 13, 2026 put houses at $2,000,000 and condos and co-ops at $1,275,000. So the citywide house market is out of FHA’s reach, and the median condo sits right at the top of it. The real FHA market is smaller and more specific: condos in neighborhoods with lower medians, and houses in the south and southeast.
FHA’s draw is the low down payment and forgiving credit rules. A score of 580 or higher qualifies for 3.5% down, and 500 to 579 needs 10%. On a $710,000 condo, the minimum down payment is about $24,850. That path into ownership matters in a city where only 38.2% of homes are owner-occupied, but it comes with mortgage insurance for the life of the loan at low down payments.
FHA Rates in San Francisco Next to Conventional
Priced for San Francisco County, October 27, 2026
0.187 points See every option 30-year fixed 7.125% 7.192% APR P&I $4,312/mo on $640,000
0.125 points See every option 15-year fixed 6.375% 6.436% APR P&I $5,531/mo on $640,000
$800 lender credit See every option 30-year VA 6.750% 6.794% APR P&I $4,151/mo on $640,000
$506 lender credit See every option 30-year jumbo 8.125% 8.207% APR P&I $10,395/mo on $1,400,000
0.322 points See every option
Par pricing for a single-family primary residence in San Francisco County: 20% down, 30-year term unless noted, 780+ credit, 30-day lock, escrows included. Payments are principal and interest only; taxes and insurance add to them. Rates change through the day and are not a commitment to lend. Price your own San Francisco scenario, no credit pull.
First-Time Buyer Market Insights for San Francisco
Sources: SF MLS data via reinsf.com (12 months to October 13, 2026); HUD Mortgagee Letter 2025-23; Apartment List San Francisco rent report (October 2026); U.S. Census Bureau ACS 2020-2024.
Rent is part of the math. A one-bedroom at $3,915 a month, up sharply over the year, is in the range of principal and interest on a lower-priced condo with a low down payment, before taxes and HOA dues. Roughly six in ten homes are rented, and FHA is one way for a renter with good income but limited savings to buy a condo.
The catch is competition. Homes sold quickly in 2026, so an FHA buyer needs an approved building and a fully reviewed file before writing an offer.
Neighborhoods Where an FHA Purchase Can Work
SF MLS medians for the 12 months ending October 13, 2026. Small neighborhoods can swing on a handful of sales, so treat each figure as a guide.
Tenderloin, Downtown and Van Ness
Condo medians of about $519,000, $569,000 and $690,000 (Van Ness and Civic Center), the lowest in the city and well under the 0.55% premium step at minimum down.
Bayview, Hunters Point and Diamond Heights
Condos at about $710,000, $610,000 and $650,000. Hunters Point Shipyard is a newer redevelopment area that may carry special district taxes; we have not confirmed which parcels do, so read the tax bill.
SoMa, Western Addition, West Portal and Dogpatch
Condo medians of about $802,500, $875,000, $901,000 and $984,000. These cross into the higher annual premium at 3.5% down, and the building’s FHA status decides everything.
Southeast and Southern House Markets
Bayview Heights about $615,000, Little Hollywood about $920,000, Bayview about $981,500, Silver Terrace about $1.04 million, Visitacion Valley about $1.05 million, Oceanview about $1.12 million, Excelsior about $1.14 million, Crocker Amazon about $1.19 million and Outer Mission about $1.2 million. Many are modest 1910s to 1950s houses, so expect the FHA appraiser to note peeling paint, a tired roof, missing handrails or exposed wiring.
Every condo purchase depends on the building. FHA requires the project to be on its approved list, or the unit to qualify for a single-unit approval, so ask Mike to check before you write an offer. HOA dues count in your debt-to-income ratio, and they vary widely between a SoMa high-rise and a small converted building.
Bidding Over List With an FHA Loan
The average San Francisco sale in September 2026 closed about 15% over list. Any loan, FHA included, is based on the lower of the price and the appraised value. Win an Excelsior house listed at $1.0 million with a $1.15 million bid, have it appraise at $1.08 million, and the loan is figured on $1.08 million; you bring the $70,000 difference in cash on top of the down payment. FHA buyers often have less cash by design, so this is the real constraint. Know how much over the appraisal you can cover, and write offers within that.
What the Mortgage Insurance Costs at $900,000
FHA charges an upfront premium of 1.75% of the base loan, usually financed, plus an annual premium billed monthly. On a 30-year loan the annual rate is 0.55% at minimum down when the base loan is $726,200 or less, and 0.75% above that; at 3.5% down the step falls at a price of about $752,500. A $900,000 condo, near the West Portal median, lands in the higher tier. With 10% or more down, the annual premium ends after 11 years; with less, it lasts the life of the loan, and the usual way out is refinancing to a conventional loan once you have the equity.
| $900,000 purchase | Base loan | Upfront MIP, 1.75% | Monthly MIP | MIP lasts |
|---|---|---|---|---|
| 3.5% down | $868,500 | $15,199 | $543 (0.75%/yr) | Life of the loan |
| 5% down | $855,000 | $14,963 | $499 (0.70%/yr) | Life of the loan |
| 10% down | $810,000 | $14,175 | $473 (0.70%/yr) | 11 years |
Annual MIP rates for case numbers endorsed on or after March 20, 2023 (ML 2023-05), unchanged through October 2026.
FHA Against Conventional at $650,000
At $650,000, around the Diamond Heights condo median, here is FHA with 3.5% down against conventional with 5% down at a 680 score, using today’s San Francisco County pricing. At this score, FHA’s steadier pricing often narrows or reverses conventional’s advantage.
| $650,000 purchase, 680 credit | Conventional, 5% down | FHA, 3.5% down |
|---|---|---|
| Down payment | $32,500 | $22,750 |
| Loan amount | $617,500 | $638,227 with 1.75% upfront MIP |
| Today’s rate (APR) | 8.125% (8.207%) | 7.250% (7.325%) |
| Principal and interest | $4,585/mo | $4,354/mo |
| Mortgage insurance | $494/mo PMI | $287/mo MIP |
| Before taxes and insurance | $5,079/mo | $4,641/mo |
| Mortgage insurance ends | At 20% equity (can be removed) | Life of the loan with under 10% down |
Before property tax, insurance and HOA dues. Both rates are today’s San Francisco County par prices, shown with APR.
FHA Requirements for City Buyers
- Score and down payment: 3.5% down at 580 or higher, 10% from 500 to 579; lenders often set a higher floor.
- Collateral: a house, an approved condo, or a whole two- to four-unit building you live in. A TIC share does not qualify.
- Occupancy: the home must be your primary residence.
- Loan size: the base loan stays within the county limit for the unit count.
- Condition: the appraiser flags safety repairs, common in pre-1940 housing.
- Credit scoring from 2027: lenders may use FICO 10T or VantageScore 4.0 alongside Classic FICO for case numbers assigned on or after January 1, 2027.
Down Payment Help: City and State
- San Francisco Downpayment Assistance Loan Program (DALP): check the current round. MOHCD runs a down payment loan program for first-time buyers in the city, a deferred second loan repaid with a share of appreciation. We could not confirm the 2026 round, loan amounts or income limits, so check MOHCD before you plan around it.
- CalHFA MyHome Assistance Program: listed as current. A deferred junior loan of up to 3.5% of the price with a CalHFA FHA first mortgage, for first-time buyers within CalHFA income limits. The Zero Interest Program pairs with CalPLUS FHA loans and MyAccess with CalPLUS Access FHA loans.
- CalHFA Dream For All: closed for 2026. Its portal closed March 16, 2026, and it pairs with a conventional first rather than FHA.
Funding rounds open and close through the year. Confirm status the week you apply.
San Francisco FHA Loan Limits for Buildings of Flats
Many two- to six-unit buildings are owned as TICs because condo conversion is restricted, which removes a large slice of the city’s more affordable inventory from FHA. Whole buildings are different: FHA will finance two to four units with 3.5% down if you live in one, using these limits.
| San Francisco County, 2026 | FHA loan limit | Highest price at 3.5% down |
|---|---|---|
| One unit (house, condo, townhome) | $1,249,125 | $1,294,400 |
| Two units | $1,599,375 | $1,657,300 |
| Three units | $1,933,200 | $2,003,300 |
| Four units | $2,402,625 | $2,489,700 |
FHA forward mortgage limits for San Francisco County, 2026 (HUD Mortgagee Letter 2025-23).
In buildings first certified for occupancy on or before June 13, 1979, existing tenants’ rents are limited to the Rent Board’s allowable increase, 1.6% for March 2026 through February 2027, and just-cause rules limit when a unit can be vacated, so qualify on the rents in place. Eligible veterans should also price a San Francisco VA loan; the San Francisco mortgage rates page shows every program, and the FHA loan guide covers the rules.
How a City FHA Purchase Moves to Closing
- Name the buildingSend the address or project name with your price range, score range and cash, so FHA approval is checked first.
- Set your appraisal limitDecide how much above an appraisal you could cover before you bid.
- Line up helpIf you are applying to DALP or CalHFA, confirm the lender participates and funds are open.
- FHA appraisalA local appraiser values the home and lists any required repairs.
- CloseE-signature or a mobile notary, then San Francisco escrow records the loan.
San Francisco FHA Loan FAQs
Will an FHA loan buy a house in San Francisco?
Only in a few neighborhoods. The 2026 limit of $1,249,125 supports a price of about $1,294,000 with 3.5% down, while the citywide house median was $2,000,000 for the 12 months ending October 13, 2026. Houses in Bayview, Visitacion Valley, Oceanview, the Excelsior, Crocker Amazon and Outer Mission had medians within reach.
Can a San Francisco FHA loan finance a TIC?
No. FHA lends on a separate legal parcel, such as a house or an approved condo, and a tenancy-in-common share is not one. TIC buyers usually rely on fractional TIC loans from a small number of local banks and credit unions. FHA can finance an entire two- to four-unit building if you live in one of the units.
What if my FHA purchase appraises below my winning bid?
The loan is based on the lower of the price and the appraised value, so the difference comes from your cash or a renegotiation with the seller. Sales averaged about 15% over list in September 2026, so set a firm limit on how much above appraisal you can cover before you bid.
Is San Francisco’s DALP down payment loan open?
The Mayor’s Office of Housing and Community Development runs a Downpayment Assistance Loan Program for first-time buyers, a deferred loan repaid with a share of appreciation. We could not confirm its 2026 round, amounts or income limits. Check MOHCD’s current round before you plan your purchase around it.
Can I ever drop the FHA premium?
Put down 10% or more and the annual premium stops after 11 years. Put down less and it lasts the life of the loan, so the usual way out is refinancing into a conventional loan once you reach about 20% equity. The 1.75% upfront premium is a one-time charge, normally financed into the loan.
Does my condo building need FHA approval?
Yes. The project must be on FHA’s approved list, or the unit must qualify for a single-unit approval. Approval varies building by building, so give Mike the project name before you write an offer.
What score do I need for a San Francisco FHA loan?
FHA allows 3.5% down at 580 and above and 10% down from 500 to 579, though many lenders set higher minimums. Comparing lenders matters for scores near those cutoffs.
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Find Out Where a San Francisco FHA Loan Works for You
Send the neighborhood or building, your price range, rough credit score and how much cash you have. Mike will check condo approval, compare FHA with conventional, with us and against other wholesale lenders, and tell you how much room you have above an appraisal.
Prefer to talk? Call 800-801-5626.