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Quick Answer
VA at a modest share and FHA at a modest share of San Francisco originations signal strong military and first-time buyer demand. FHA mortgage insurance premiums are set by HUD and are the same at every lender, so compare FHA lenders on rate, lender fees and points using their Loan Estimates.
Median owner-occupied home value (Census ACS 2020–2024 5-year): $1,394,500
FHA loan share: modest
Conventional loan share: majority
Median real estate taxes paid by homeowners (San Francisco County, ACS 2024 5-year): $9,862 a year
Data from U.S. Census Bureau, HMDA
FHA Loans in San Francisco: 2026 Market Snapshot
If you're weighing an FHA loan in San Francisco right now, it helps to understand the landscape you're stepping into. The median owner-occupied home value in San Francisco is $1,394,500 (Census ACS 2020–2024 5-year).
FHA loans currently make up a modest share of local lending, while conventional loans dominate the market. That gap tells you something: most San Francisco buyers go conventional, but FHA remains a meaningful path, particularly for those with smaller down payments or shorter credit histories. It's worth understanding why so many borrowers land on either side.
Don't forget ongoing costs beyond the mortgage itself. San Francisco County property taxes add a recurring expense you'll want to factor into your monthly budget from day one. San Francisco County homeowners paid a median $9,862 a year in real estate taxes (Census ACS 2024 5-year), about 0.71% of the county's $1,394,500 median owner-occupied home value in the same survey.
Before committing, compare offers from several lenders, read every disclosure carefully, and ask questions until the terms are clear. A little homework now protects your finances later.
What is the average mortgage rate in San Francisco right now?
As of 2026, the average 30-year fixed mortgage rate in San Francisco, CA is near current national averages. The 15-year fixed runs roughly 70–80 basis points lower. Rates change daily with bond market movements — locking in at the right time can save thousands over the life of your loan.
What credit score do I need for a mortgage in California?
In California, most lenders require 620 (FHA) / 660+ (conventional) to qualify. FHA loans accept scores as low as 580 with 3.5% down (or 500 with 10% down). Conventional loans above 740 typically receive the best rates — improving your score by even 40 points before applying can lower your rate by a quarter to half a percentage point.
How much down payment is typical in San Francisco?
First-time buyers in San Francisco commonly put down 3.5% on FHA loans or 5–20% on conventional loans. The CalHFA MyHome Assistance Program — deferred-payment junior loan for down payment and closing costs. A 20% down payment eliminates PMI and reduces your monthly payment, but is not required.
What are California-specific first-time buyer programs?
California offers the CalHFA MyHome Assistance Program — deferred-payment junior loan for down payment and closing costs. These programs typically have income limits of 80–120% of area median income and require completion of an HUD-approved homebuyer education course. Ask your lender to run a combined FHA + assistance program quote alongside a conventional loan.
FHA vs. conventional in San Francisco — which is more common?
Conventional jumbo loans dominate high-cost CA metros; FHA is capped at conforming loan limits. FHA loans are easier to qualify for but carry an upfront MIP fee (1.75% of loan amount) plus annual MIP. Once you have 20% equity, conventional loans allow PMI cancellation — making them more cost-effective long-term for buyers who can qualify.
How long does closing take in California?
The typical mortgage closing timeline in California is 45–55 days from application to closing. Pre-approval before making an offer can shorten this to 30–35 days. Delays most often occur at appraisal, title search, or underwriting — your loan officer can flag issues early if you provide all documentation upfront.
