Conventional Investment Property Loans in San Francisco, CA
Loan-size math and qualifying analysis for Conventional financing on San Francisco's $1.4M median home value. Marginal fit.
Marginal fit for San Francisco.
San Francisco's $1.4M median requires $274k cash down — meaningful capital lockup that constrains portfolio velocity. Better suited to slow accumulation than rapid scaling.
Payment on San Francisco's $1.4M median.
| Median home value (San Francisco) | $1,369,171 |
| Assumed LTV | 80% |
| Loan amount | $1,095,337 |
| Cash to close (down payment) | $273,834 |
| Assumed rate | 6.75% |
| Term | 30-year amortizing |
| Monthly P&I | $7,104/mo |
Does San Francisco pencil?
| Median monthly rent (San Francisco) | $4,101/mo |
| Property taxes (est. 1.1%/yr) | −$1,255/mo |
| Insurance (est. 0.5%/yr) | −$570/mo |
| NOI (before debt) | $2,276/mo |
| Debt service | −$7,104/mo |
| DSCR | 0.32 |
Most Conventional lenders require DSCR ≥ 1.10 to fund and ≥ 1.20-1.25 for the best pricing tier. San Francisco medians fall below typical lender DSCR floors — a DSCR loan will only work on properties materially below median or with above-market rent.
Conventional financing — the mechanics.
Conforming residential mortgage for non-owner-occupied 1-4 unit properties, sold to Fannie Mae or Freddie Mac. Standard 30-year amortization. The lowest-cost real-estate financing available to most investors.
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
How California law affects this loan.
California: state income tax up to 13.3%. See full Conventional in California breakdown.
Frequently asked.
What's the typical Conventional loan size for a property in San Francisco?
On San Francisco's $1.4M median home value, a Conventional loan at the standard 80% LTV would be approximately $1.1M, requiring $274k down.
What's the monthly payment on a typical Conventional loan in San Francisco?
Fully-amortizing 30-year payment on a $1.1M Conventional loan at the typical rate of 6.75% would be approximately $7k/month, excluding taxes and insurance.
Is San Francisco a good market for Conventional financing?
San Francisco's $1.4M median requires $274k cash down — meaningful capital lockup that constrains portfolio velocity. Better suited to slow accumulation than rapid scaling.
What credit and reserves do Conventional lenders require for San Francisco properties?
Lender requires: 680+ FICO, 20-25% down, DTI typically under 45% including the new mortgage, 2 years of W-2 + tax returns, 6 months of reserves per property. Closing in 30-45 days.
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