Money and Mortgage for San Francisco Buyers
The mortgage is the single largest place a San Francisco buyer saves or loses money, and most of the saving comes from shopping rather than from timing the market. Two lenders will price the same borrower differently on the same day. One lender will underwrite your file up front and another will not. One will quote PMI through a carrier that runs $100 or more a month higher than the next on an SF-sized loan.
This stage is built around that fact. It walks through the decisions in the order you will meet them, from how much to put down to what the 2025 federal tax law actually does to your after-tax payment.
What good looks like
A well-prepared SF buyer walks into offer season with a fully underwritten pre-approval from a lender who will pick up the phone for a listing agent on a Sunday, a second lender's Loan Estimate in hand for leverage, down payment funds sitting untouched in one account for two months, a clear number for reserves and appraisal-gap cash that is separate from the down payment, and written lock terms long enough to survive a 21 to 30 day escrow.
The biggest mistakes
- Taking the first pre-approval and never getting a competing Loan Estimate. On a $1.2 million loan a quarter point is roughly $190 a month for as long as you hold the loan.
- Treating 20% down as the goal and arriving with no reserves and no appraisal-gap cushion. In SF the cash that wins is the cash that makes the offer safe.
- Assuming you earn too much for DALP or CalHFA without checking the current income charts.
- Locking a 30-day rate on a 30-day escrow with no buffer, then paying an extension fee when the HOA questionnaire comes back late.
- Assuming the mortgage interest is deductible. Above $750,000 of loan balance it is not, and the SALT cap phases down at higher incomes.
In this stage
Start with how much to put down and what PMI costs, then check whether MOHCD DALP, BMR or CalHFA applies to you. If a partner, your parents or friends are part of the money, read co-buying with a partner, parents or friends before anyone wires funds; the choice between a gift, a family loan and a share of title carries tax consequences years later. Figure out whether your price point means a conforming, high-balance or jumbo loan, get a fully underwritten pre-approval, and use a method to shop lenders on same-day Loan Estimates. Before you are in contract, settle rate locks, points and buydowns in writing, and run the after-tax math under the 2025 tax law so the payment you are planning around is the real one.
This site is paid through the buyer-side commission when a reader chooses to work with its agents. It takes no lender referral fees.
Do this now
- Decide your down payment target and whether conforming, high-balance or jumbo fits; the best lender differs for each.
- Check MOHCD DALP, BMR and CalHFA eligibility before assuming you earn too much; SF income limits are higher than people think.
- Get a fully underwritten pre-approval (credit pulled, documents reviewed), not a pre-qualification; SF listing agents expect it with every offer.
- Request Loan Estimates from three or more lenders on the same day, including a broker and a credit union, and compare rate, Section A fees and credits side by side.
- Get each lender's lock period, float-down terms and extension fees in writing before you are in contract.
- Keep down payment funds seasoned in one account for 60+ days and document any gifts.
- Freeze your financial life: no new credit, job changes or unexplained transfers between pre-approval and closing.
- Model the tax effect with the post-2025 SALT cap and mortgage-interest limit rather than assuming the interest is deductible.
Articles in this stage
- Down Payment in San Francisco: How Much You Need (and PMI)
Minimum and smart down payments at SF prices, what PMI costs by credit score and LTV, how it ends, and how gifts, 401(k) loans, RSUs and reserves work.
- SF Down Payment Assistance: MOHCD DALP, BMR and CalHFA
Who qualifies for MOHCD DALP, BMR units and CalHFA in San Francisco, what shared appreciation costs later, and how the programs fit a competitive offer.
- Conforming vs Jumbo Loans in San Francisco (2026 Limits)
The 2026 SF conforming limit is $1,249,125. How jumbo underwriting, rates, reserves and condo rules differ, and how to structure a loan to stay under.
- Mortgage Pre-Approval in SF: Credit, DTI and What You Can Afford
What SF lenders want for a fully underwritten pre-approval, how affordability is really calculated with HOA dues, and how the letter should read on offer day.
- How to Shop Mortgage Lenders in SF: Broker vs Direct Lender
A method to compare three or more lenders on same-day Loan Estimates, when a broker, bank or credit union wins at SF loan sizes, and which fees to negotiate.
- Rate Locks, Points and Buydowns: What to Pay For
Break-even math on discount points, when 2-1 buydowns help, and why a 21 to 30 day SF escrow makes lock length, float-downs and extension fees matter most.
- Mortgage Interest and SALT for SF Buyers After the 2025 Tax Law
The $750,000 interest limit, SALT cap and phase-down, PMI deductibility and California rules applied to SF-sized loans for an honest after-tax payment.
- Co-Buying a Home in SF With a Partner, Parents or Friends
Gift, loan, co-borrower or co-owner: what each does to your mortgage and taxes, how co-buyers hold title, and the Prop 19 trap in a parent's share of title.
What to shop for at this stage
| Service | When | Savings from shopping | How to shop it |
|---|---|---|---|
| Mortgage lender | After your readiness check, before you write offers | High: shop it hard Freddie Mac estimates $600 to $1,200 a year from multiple quotes on typical loan sizes; SF loan sizes are several times larger, so the dollar savings scale accordingly. | Get a fully underwritten pre-approval from two lenders, then request Loan Estimates from three or more (a broker, a bank or credit union, and a direct lender) on the same day and compare rate, Section A fees and lender credits line by line. |
| Private mortgage insurance | When you are putting down less than 20% on a conforming loan | Medium: worth 2-3 quotes Annual PMI runs about 0.46% to 1.50% of the loan depending on credit score and loan-to-value; lenders quote different carriers, so the same borrower can see different premiums. | Compare the PMI line on each Loan Estimate, and ask each lender to quote borrower-paid monthly, lender-paid and a piggyback second alongside it. |
| Program-approved mortgage lender | If you are using DALP, BMR or CalHFA | Medium: worth 2-3 quotes The same quarter to half point spread seen among all lenders shows up among approved lenders; the program terms themselves are fixed. | Programs require MOHCD- or CalHFA-approved lenders, which shrinks the list, but the first-mortgage rate and fees still differ between approved lenders. Compare at least two. |
| Rate lock terms and points pricing | Before you are in contract | Medium: worth 2-3 quotes Extension fees commonly run about 0.125% to 0.25% of the loan for a 7- to 15-day extension, and published lender schedules step up for longer or repeated extensions (0.25% to 0.5% for a 30-day extension is typical), so on a $1.2 million loan each extension you avoid is roughly $1,500 to $3,000 or more; as of 2026-10-25, confirm each lender's schedule in writing. | Ask every lender in writing for lock length, float-down rules, extension fees and the price per point, then weigh a free 45-day lock against a slightly lower headline rate. |
Frequently asked questions
How much does shopping for a mortgage actually save?
Freddie Mac research found borrowers who get quotes from multiple lenders save roughly $600 to $1,200 a year, and the spread between lenders roughly doubled in 2022. Those figures are based on typical national loan sizes, so on a San Francisco loan of $1 million or more the dollar savings scale up. The saving comes from comparing same-day Loan Estimates, not from picking the lender with the best advertised rate.
What is the conforming loan limit in San Francisco for 2026?
For 2026 the FHFA set the one-unit conforming loan limit in San Francisco County at $1,249,125, which is the national high-cost ceiling. The baseline limit in most of the country is $832,750. Loans above $1,249,125 are jumbo loans and are priced and underwritten by each lender rather than to Fannie Mae and Freddie Mac rules.
Do I earn too much for San Francisco down payment assistance?
Probably not as quickly as you think. The city's DALP program in its recent cycles accepted households earning up to 200% of area median income, which for a two-person household is roughly $250,000 to $260,000 on MOHCD's recent income charts. BMR units have lower caps tied to each unit, and CalHFA's county income limit for San Francisco has recently been around $300,000. Check the current charts and the current DALP cycle rules rather than assuming; both agencies revise them every year.
What kind of pre-approval do San Francisco listing agents want to see?
A fully underwritten pre-approval, meaning an underwriter has already reviewed your credit, income and asset documents, and only the property-specific items remain. Listing agents in SF commonly call the lender named on the letter to confirm the file is real and the lender can close in a short escrow. A pre-qualification based on self-reported numbers carries little weight.