San Francisco is one of the few markets where buyers routinely weigh three different ownership structures. Each has real consequences for financing, monthly cost, control and resale. Here is how they compare.
Single-family homes
- Ownership: you own the home and the land outright.
- Financing: the widest range of loan options and the best rates.
- Cost: highest purchase prices in the city, but no HOA dues; you control maintenance and timing.
- Best for: buyers who want maximum control and the strongest long-term resale, and can afford the entry price.
Condominiums
- Ownership: you own your unit plus a share of the common areas, governed by an HOA.
- Financing: standard conforming and jumbo loans, provided the building meets lender guidelines (owner-occupancy ratio, reserves, no major litigation).
- Cost: lower entry price than houses, but monthly HOA dues — and the risk of special assessments for big-ticket repairs. Always review the HOA budget, reserve study and meeting minutes.
- Best for: buyers who want lower maintenance, a central location, or amenities, and who read the HOA documents carefully.
Tenancy in Common (TIC)
- Ownership: you and the other owners hold title to the whole building together, with a written TIC agreement granting you exclusive right to your unit.
- Financing: historically shared "group" mortgages; now often fractional loans where each owner has their own mortgage. Rates are typically higher than for condos, and fewer lenders participate.
- Cost: usually priced 10%–20% below a comparable condo to account for the financing and structure. Condo conversion is limited by city rules, so don't assume a TIC will become a condo.
- Best for: buyers priced out of condos in a given neighborhood who understand and accept the shared-ownership structure and want the discount.
With a house you are buying a property. With a condo or TIC you are also buying into a small organization — vet its finances and its people.
Questions to ask before you offer
- What are the monthly dues, and what do they cover? What is the reserve balance?
- Are there planned or recent special assessments? Any litigation?
- For a TIC: what does the TIC agreement say about selling, financing, and dispute resolution? What is the loan structure?
- What is the owner-occupancy percentage, and does it meet my lender's requirements?