HOME FINANCING · CA

Home Financing in San Francisco County: A Plain-Language Guide for Solo Contractors & Small Investors

San Francisco County has one of the most expensive housing markets in the country, but local CDFIs, credit unions, and state-backed programs exist specifically to help working residents — including solo contractors, the self-employed, and ITIN holders — buy or invest in property here. This guide walks you through how home financing works in San Francisco, who qualifies, what documents you need, and which local organizations can actually help you. Take your time, compare options, and never sign anything you don't fully understand.

§ 01 — What it is

What Is Home Financing and How Does It Work in San Francisco County?

Home financing — commonly called a mortgage — is a loan you use to purchase or refinance a home. You borrow money from a lender, buy the property, and then repay the lender over time (usually 15 to 30 years) with interest. The home itself serves as collateral, meaning if you stop making payments, the lender can foreclose. In San Francisco County, the median home price regularly exceeds $1.2 million, which means most buyers need a substantial down payment and a loan that falls under — or exceeds — conforming loan limits. For 2024, the conforming loan limit for a single-family home in San Francisco County is $1,149,825, one of the highest in the nation. Loans above this threshold are called jumbo loans and typically require stronger credit profiles. Common home loan types available here include: • **Conventional loans** — offered by banks and credit unions, often requiring 5–20% down. • **FHA loans** — federally backed, allowing as little as 3.5% down with a credit score of 580+. Useful for first-time buyers but carry mortgage insurance premiums. • **VA loans** — zero-down loans for eligible veterans and active-duty military. • **ITIN loans** — for buyers who don't have a Social Security Number but do have an Individual Taxpayer Identification Number. Several local lenders in San Francisco offer these. • **Portfolio loans** — loans kept in-house by a lender rather than sold to the secondary market; often more flexible for self-employed borrowers or those with non-traditional income. The right loan type depends on your income, tax situation, immigration status, and how long you plan to hold the property.

§ 02 — Who qualifies

Who Qualifies? Local Eligibility Tied to San Francisco's Economy

San Francisco's workforce is unusually diverse — it includes tech workers, gig-economy contractors, restaurant and hospitality workers, tradespeople, small landlords, and a large immigrant community. Lenders here are generally familiar with non-traditional income profiles, but you still need to demonstrate the ability to repay. **Standard borrower criteria (most lenders):** • Credit score of 620+ for conventional loans; 580+ for FHA; some ITIN lenders accept no credit score and use alternative credit history instead. • Debt-to-income (DTI) ratio below 43–50% depending on the loan program. • Steady income for at least 24 months — this can include self-employment, 1099 contractor income, rental income, or a combination. • Down payment funds that can be sourced and documented (personal savings, gift funds, or down payment assistance). **Solo contractors and self-employed buyers:** San Francisco has a high concentration of independent contractors in construction, tech consulting, creative services, and caregiving. Lenders will typically look at your last two years of tax returns (Schedule C or Schedule E), bank statements, and sometimes a profit-and-loss statement prepared by a CPA. Bank-statement loans — where your average deposits over 12–24 months are used instead of tax returns — are available through several local lenders and are especially useful if your taxable income looks lower than your actual cash flow. **ITIN holders:** You do not need a Social Security Number or U.S. citizenship to buy a home in California. Several San Francisco-area lenders and CDFIs offer ITIN mortgage products. You will generally need two years of tax filing history using your ITIN, proof of residency (such as a utility bill or lease), and alternative credit references if you lack a traditional credit score. **Small real-estate investors:** If you're buying a 2–4 unit property to live in one unit and rent the others, you may be able to count projected rental income to help qualify. San Francisco's strong rental market makes this strategy common among small investors.

§ 03 — What you need

Documents Typically Required

Gathering your documents early makes the process much smoother. Below is a general checklist — your specific lender may ask for more or less depending on the loan type. **Identity & Residency** • Government-issued photo ID (passport, driver's license, or consular ID / matrícula consular) • ITIN letter from the IRS (if applicable) or Social Security card • Proof of residency (utility bill, lease agreement) **Income & Employment** • Last two years of federal tax returns (all pages, all schedules) • W-2s or 1099s for the past two years • If self-employed: Year-to-date profit-and-loss statement signed by a licensed CPA • For bank-statement loans: 12–24 months of personal or business bank statements • Current pay stubs (if you have W-2 employment on the side) **Assets** • Two to three months of bank statements (checking, savings, investment accounts) • Documentation of any gift funds (a signed gift letter from the donor) • Proof of down payment assistance funds if applicable **Property (once you're in contract)** • Signed purchase agreement • Homeowners insurance binder • HOA documents (if buying a condo or PUD) **Credit** • Your lender will pull your credit report directly; you don't need to provide it. • If you have no credit score, gather alternative references: 12 months of on-time rent payments (landlord letter), utility payment history, or remittance records. Keep digital and physical copies of everything. Organize by category so you can respond quickly when your lender requests documents — delays in document delivery are one of the most common reasons closings are pushed back.

§ 04 — Where to start in San Francisco County

Local Lenders, CDFIs, Credit Unions & Programs That Serve San Francisco County

This is where San Francisco residents have real options beyond big national banks. The following organizations are known to serve San Francisco County residents, including first-time buyers, self-employed borrowers, and ITIN holders. Origen Capital is a directory, not a lender — always verify current programs and rates directly with each institution. **CDFIs (Community Development Financial Institutions)** • **Mission Economic Development Agency (MEDA)** — Based in the Mission District, MEDA offers homebuyer education, one-on-one financial coaching, and connections to affordable mortgage products specifically designed for low-to-moderate income San Francisco residents and Latino families. They work closely with ITIN borrowers. • **Tenderloin Neighborhood Development Corporation (TNDC)** — Serves lower-income San Francisco residents with housing counseling and affordable homeownership pathways. • **Opportunity Fund (now Accion Opportunity Fund)** — While primarily a small business lender, they offer financial coaching that can help self-employed borrowers strengthen their mortgage readiness. **Local & Regional Credit Unions** • **SF Fire Credit Union** — Open to San Francisco residents and workers. Offers conventional mortgages, home equity products, and first-time buyer programs with personalized service. • **Patelco Credit Union** — Serves the broader Bay Area including San Francisco. Known for competitive mortgage rates and flexible underwriting for members with varied employment histories. • **First Tech Federal Credit Union** — Strong in the Bay Area; serves those in the tech and contracting sectors, with portfolio loan options. • **Self-Help Federal Credit Union** — A CDFI credit union with branches in San Francisco that specifically serves immigrants, ITIN holders, and low-to-moderate income borrowers. One of the most important institutions for buyers who feel excluded from mainstream lending. **ITIN-Friendly Lenders** • **Axos Bank** and **Union Bank (now U.S. Bank)** have historically offered ITIN mortgage products in California; confirm current availability. • Several local mortgage brokers in the Mission, Excelsior, and Sunset districts specialize in ITIN loans — ask at MEDA for referrals to vetted brokers. **SBA District Office (for small investor context)** • The **SBA San Francisco District Office** (located at 455 Market St, Suite 600) oversees small business lending in the region. While the SBA does not directly fund home mortgages, SBA 504 loans can finance owner-occupied commercial real estate, which may be relevant if you're purchasing a mixed-use property. **State & Local Down Payment Assistance** • **CalHFA (California Housing Finance Agency)** — Offers the MyHome Assistance Program (up to 3.5% of purchase price as a deferred-payment junior loan for down payment or closing costs) and the Dream For All Shared Appreciation Loan, which provides up to 20% of the purchase price. Income limits apply; San Francisco County limits are higher than most California counties due to the local cost of living. Apply through a CalHFA-approved lender. • **San Francisco Mayor's Office of Housing and Community Development (MOHCD)** — Administers the Below Market Rate (BMR) ownership program and occasionally offers down payment assistance for qualifying San Francisco residents. Income and lottery requirements apply. Visit sf.gov/mohcd for current opportunities. • **Golden State Finance Authority (GSFA) Platinum Program** — Offers down payment and closing cost assistance in California, accessible through participating lenders.

§ 05 — What to avoid

California & San Francisco-Specific Regulatory Notes

California has some of the strongest borrower protections in the country. Here's what matters most for San Francisco County buyers: **Proposition 13 & Property Taxes** California's Proposition 13 caps annual property tax increases at 2% per year once you own a home. Your base tax rate is set at roughly 1% of the purchase price at the time you buy. In San Francisco, the city also levies additional special assessments and parcel taxes, so your total effective property tax rate is typically 1.15–1.25% of assessed value. Budget for this when calculating your monthly housing costs. **Proposition 19 (2021)** Affects how property tax benefits transfer between parents and children. If you're planning to pass property to family, speak with a California estate attorney about the current rules. **California Homeowner's Bill of Rights** If you ever face financial hardship, California law requires lenders to offer a single point of contact, prohibits dual-tracking (pursuing foreclosure while a loan modification is pending), and gives you the right to appeal a denial of a loan modification. **Rent Control Considerations for Investors** If you're buying a multi-unit property in San Francisco, be aware that San Francisco's Rent Ordinance applies to most residential rental units built before June 1979. This means rent increases are capped and evictions are restricted. This affects cash flow projections and your exit options. Review the San Francisco Rent Board's guidelines before purchasing. **California Mortgage Relief Program** If you experienced pandemic-related hardship, the California Mortgage Relief Program may still have resources. Check MortgageRelief.ca.gov for current status. **HUD-Approved Housing Counselors** California requires lenders to provide borrowers with a list of HUD-approved housing counselors. In San Francisco, MEDA and several other organizations offer free HUD-certified counseling. This is valuable — use it before you sign anything.

§ 06 — Ask a question

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