Condo Conversion & Home Financing

Typically lenders do not require refinancing if a condo conversion occurs. Most owners prefer to refinance though and for good reason, including:

  • Refinancing makes the process of selling a converted unit separately or transferring ownership to an individual owner more simple.
  • Refinancing a converted unit reduces the default risk associated with sharing a mortgage with other owners.
  • If an owner is able to get better financing terms now, waiting to refinance means assuming risk of future job loss, income change, or credit issues that could make refinancing problematic or impossible.
  • Refinancing may qualify a unit for future exemption from San Francisco's rent control rules.
  • A smaller unit with one owner may offer lower interest loans with better terms than a group loan for multiple units.