For Buyers
Navigate the Bay Area market with confidence. Essential guides to help you make informed decisions in one of the country's most complex real estate markets.
Condo vs. TIC Cheat-Sheet (Bay Area 2025)
Use this primer to understand the legal structure, financing, and rent-control wrinkles before you write an offer.
In the Bay Area, you'll encounter TIC (Tenancy in Common) properties alongside traditional condos. Understanding the differences is crucial for making the right investment decision.
At-a-Glance Comparison
| Topic | Condominium | Tenancy-in-Common (TIC) |
|---|---|---|
| Legal title | Individually deeded unit + share of common areas; governed by Davis-Stirling Act & recorded CC&Rs. | Undivided % of whole property; exclusive-use rights to one unit via a private TIC Agreement. |
| Monthly costs | Board-adopted HOA dues cover reserves, insurance, maintenance. | Expenses allocated in the TIC Agreement; no statutory HOA board. |
| Financing | Conventional, FHA/VA, and jumbo 30-yr fixed widely available (3–5% down possible). | Limited "fractional" lenders; expect ≈ 20% down on 3–7-yr ARMs, typically 0.5–1 pt above condo rates. |
| Governance & rules | Majority vote via HOA board; CC&Rs enforce bylaws. | Changes usually need unanimous or super-majority approval. |
| Resale pool & liquidity | Broad buyer + lender pool; values track wider condo market. | Niche audience; lower entry price but slower resale in downturns. |
| Renting & rent-control rules | Generally exempt from SF rent-increase caps under Costa-Hawkins & AB 1482—market rents allowed at turnover (eviction rules still apply). | Usually subject to SF Rent Ordinance caps if the building was built before 1979—most TICs fall here; annual increases follow Rent Board limits. |
Bottom Line:
Choose a condo for financing flexibility, easier future renting, and the widest resale market. Opt for a TIC when a prime location or lower entry price outweigh tougher loan terms and rent-control limits.
Where They're Found
(owner-occupied units, CoreLogic Tax 2023)
| County | Condos | Share of housing | TICs | Share of housing |
|---|---|---|---|---|
| San Francisco | 37,902 | 20% | 834 | 0.4% |
| Santa Clara | 65,747 | 14.5% | < 1,000 | <0.1% |
| Alameda | 37,753 | 8.9% | < 1,000 | <0.1% |
| San Mateo | 19,994 | 10% | 837 | 0.4% |
| Contra Costa | — | — | 2,578 | 0.7% |
Across the nine-county region, condos outnumber TICs by roughly 40:1, and nearly three-quarters of TICs sit inside pre-1979 buildings—meaning they're almost always rent-controlled.
Five Key Takeaways for Buyers
1. Liquidity
Huge condo inventory vs. a four-figure TIC pool = faster resale.
2. Loan Choice
30-yr fixed and low-down programs disappear for most TICs.
3. Rental Flexibility
Condos are rent-cap-exempt; TICs usually are not.
4. Governance
Condo CC&Rs evolve by majority vote; TIC Agreements often demand unanimity.
5. Cost Trade-Off
TIC entry prices run ~10–20% below comparable condos but come with higher rates and rent-control limits.
Next Step → Book a free 15-minute call
Get a sample TIC Agreement checklist plus a lender list for fractional financing.
Schedule Your CallSources
- • California DRE – Tenancy-in-Common Guidelines (tic_guidelines.pdf)
- • California DRE – Living in a California Common Interest Development brochure (RE 39)
- • Redwood Credit Union – "TIC Loans" page (rates, 20% down)
- • Federal Reserve Bank of San Francisco – Homeownership Opportunities Beyond Single-Family (2024), Appendix Tables 1-2 (condo & TIC counts)
- • SF Rent Board – Costa-Hawkins condo rent-cap exemption overview (sf.gov)
- • California Civil Code § 1954.52 (Costa-Hawkins) – condominium exemption
Bridge & Jumbo Financing Primer (Bay Area 2025)
Record-high prices push many Bay Area buyers over the federal "conforming" cap. Learn your financing options when price alone pushes you past the county ceiling.
What Each Option Looks Like
| Tool | Loan Size (1-unit, 2025) | Typical Down | Speed / Strength | Watch-outs |
|---|---|---|---|---|
| High-balance conforming | $806,501 – $1,209,750 | 5% (certain programs) | 21–30-day close; standard Fannie/Freddie underwriting | Slightly higher rate & PMI above 80% LTV |
| Jumbo | $1,209,751+ | 10-20% | 25–30-day close (full docs) | Stricter DTI, 6-12 mo. cash-reserve requirement; rates ≈ 0.15-0.40% higher |
| Bridge / "Buy-Before-You-Sell" | Up to 70% of equity in current home | Often no down on purchase until sale closes | 10–15-day close; lets you write a non-contingent, cash-like offer | 1-3% origination fee, interest-only for 6-12 mo.; must sell on schedule |
Bottom Line:
Use a bridge loan when timing—not credit—blocks you and you have equity to tap; use a jumbo loan when price alone pushes you past the county ceiling.
Action Steps for Buyers
1. Verify your ceiling
Look up the 2025 conforming limit for your county on HUD's search tool, then price scenarios at both high-balance and jumbo tiers.
2. Pre-qualify early
Ask your lender for written estimates showing rate, cash reserves, and closing costs for high-balance vs. jumbo.
3. Own & buy?
Request bridge-loan quotes (rate + origination % + interest-only term). Confirm how long you can carry two loans.
4. Show your strength
When using bridge funds, include the lender's "proof-of-funds" letter with your offer to reassure sellers.
5. Keep cash seasoned
Jumbo underwriters will want 60+ days of bank statements—avoid large last-minute transfers.
Authoritative References
- • Federal Housing Finance Agency, "FHFA Announces Conforming Loan Limit Values for 2025"
- • HUD, FHA/GSE Mortgage-Limit Lookup Tool
- • CFPB, Ask-CFPB: "What is a jumbo loan?"
- • HomeLight Blog, "Bridge Loans in San Francisco: How to Unlock Home Equity to Buy Before You Sell"
- • NAR Buyer Handout, "How to Buy in a Tight Market"
Ready to Start Your Home Search?
Let's discuss your specific financing needs and find the perfect Bay Area home for you.
Schedule a Buyer Consultation