Trying to choose between a TIC, condo, or co-op in SoMa? You are not alone. With a mix of loft conversions and new high-rise condos, SoMa offers many ownership paths, each with different rules, financing, and resale realities. In this guide, you will learn how these ownership types work, what lenders expect, how monthly costs and governance differ, and what to watch for in SoMa buildings. Let’s dive in.
Quick definitions
Condo basics
A condominium gives you fee-simple ownership of your unit plus an undivided interest in the common areas. Your unit has its own title and you can secure a standard mortgage. You will be part of a homeowners association governed by CC&Rs, bylaws, and budgets that set rules and assessments.
TIC basics
A tenancy in common gives you a fractional interest in the entire property, along with a private TIC agreement that defines who occupies which unit, how costs are split, voting rights, and what happens if someone defaults. Financing is more specialized because title is fractional. TICs are common in San Francisco, especially in smaller, older multi-unit buildings and loft conversions.
Co-op basics
In a cooperative, a corporation owns the building. You buy shares in the corporation and receive a proprietary lease to live in a specific unit. Financing involves share loans, and board approval is typically required for buyers and sublets. Corporate rules and financials matter as much as the unit itself.
Financing in SoMa
What lenders will finance
- Condos: Broadest lender pool, including conventional, jumbo, FHA, VA, and portfolio options when the project meets program criteria. Lenders review HOA reserves, delinquency, insurance, and any litigation.
- TICs: Limited lender pool. Terms often include higher rates or lower maximum loan-to-value compared with condos. FHA and VA financing are generally limited. Lenders scrutinize the TIC agreement, mortgage structure, and co-owner risk.
- Co-ops: A smaller set of lenders offer share loans. Board approval is part of the process and can impact timing. FHA or VA approval is possible but rare.
How timelines differ
- Condos: With preapproval and HOA docs in hand, many close in about 30 to 45 days.
- TICs: Often 45 to 75 days or more due to lender selection, attorney review of the TIC agreement, and co-owner estoppels.
- Co-ops: Add time for board applications and interviews, commonly 30 to 60 days depending on the board calendar.
Key takeaway: Financing is most flexible with condos, more specialized with TICs, and process-driven with co-ops because of board approvals.
What you own and your risk
- Title type: Condo owners receive an individual deed. TIC owners hold a fractional interest in the whole property under a private agreement. Co-op owners hold corporate shares and a proprietary lease, not real property title.
- Lender remedies: A condo lender can foreclose on the unit. Foreclosure on a TIC fractional interest is more complex. Co-op lenders foreclose on shares, and corporate rules still apply.
- Liability and obligations: TIC agreements control cost allocation, default remedies, and transfer rights. Co-op proprietary leases and bylaws outline maintenance obligations and sublet policies. In condos, CC&Rs and HOA rules govern use and assessments.
Monthly costs and building rules
- Condo HOA dues: Cover building insurance, maintenance, management, and reserves. Amenity-rich SoMa towers often carry higher dues due to services like concierge and gyms.
- TIC monthly carry: Depends on the TIC agreement and mortgage structure. Some buildings have a single master loan that co-owners share, while others have separate loans. Utilities, reserves, and insurance are allocated by agreement.
- Co-op maintenance: Typically includes the building’s mortgage if any, property taxes paid by the corporation, utilities, and reserves.
- Rental and short-term rules: Policies vary by building type and governing documents. Some SoMa condos allow rentals within city regulations, while many TICs and co-ops limit subletting. Always review the building’s rules and San Francisco requirements.
- Insurance: Condo owners usually carry HO-6 policies because the HOA master policy covers common areas. TIC and co-op coverage depends on the building’s policy and your personal policy for contents and liability.
Due diligence: What to review
For condos
- CC&Rs, bylaws, house rules, HOA budgets, reserve studies, most recent financials, meeting minutes, and any litigation disclosures.
- Lender checklist items such as insurance levels, delinquency rates, and project eligibility.
For TICs
- The full TIC agreement: shares, occupancy rights, cost allocations, mortgage structure, transfer and buyout provisions, default remedies, and insurance.
- Mortgage exposure: whether there is a single master mortgage or separate loans, and whether liability is joint and several.
- Estoppel letters or co-owner consents that lenders often require.
- Physical inspections, especially for loft conversions: seismic bracing, egress, accessibility, roof and building systems.
For co-ops
- Corporate financials, minutes, proprietary lease, sublet policies, and capital project plans. Confirm board application requirements and timelines.
Pro tip: Start document review early. The governing documents can materially affect financing, use, and timing.
Resale and marketability in SoMa
- Buyer pool: Condos attract the widest audience, including some FHA/VA buyers when projects qualify. TICs and co-ops draw smaller pools due to financing limits and governance requirements.
- Appraisal and valuation: Condos have deeper comparable sales, which helps appraisals. TIC and co-op comps are rarer and can complicate valuation and loan sizing.
- Liquidity and timing: Condos often sell faster. TICs and co-ops may take longer because of lender searches, document reviews, or board approvals.
- Investor appeal: Condos are generally more investor-friendly, subject to rental rules. TICs and co-ops often have tighter limits on subletting and investors.
SoMa specifics: Lofts vs newer condos
- Building type: SoMa blends older loft conversions with mid- and high-rise condo developments. Lofts may feature high ceilings and unique layouts, but they can have less sound isolation and nonstandard systems.
- Seismic and life-safety work: Older buildings may need seismic upgrades, fire-life safety, or accessibility improvements. Reserve adequacy matters because these projects can lead to special assessments.
- Amenities and dues: Newer buildings often have concierge services, gyms, and meeting spaces, which raise HOA costs and reserve needs.
- Parking and storage: Deeded or assigned parking and storage vary widely and can affect value. Verify rights with recorded documents and building rules.
- Noise and development: SoMa is active with ongoing commercial and residential projects. Consider construction activity, potential changes to views, and building orientation when you tour.
SoMa loft vs new condo: How to choose
- You value flexible financing and simpler resale: A condo usually fits best.
- You want price efficiency and accept structure complexity: A TIC may offer value compared with similar condos, with the tradeoff of lender and agreement complexity.
- You prefer corporate-style governance and a curated community process: A co-op can work if you are comfortable with board approvals and share loans.
- You want amenities, services, and turn-key living: Newer SoMa condos deliver that, often with higher HOA dues. Lofts deliver character and volume but may require more scrutiny around systems and sound.
Step-by-step plan for SoMa buyers
Before touring
- Get prequalified with a lender experienced in condos, TICs, and co-ops.
- Ask for key docs early: condo CC&Rs, budgets, reserves, minutes; TIC agreement, mortgage details, insurance; co-op financials and proprietary lease.
During review
- Read the TIC agreement or proprietary lease early to uncover transfer rules, default remedies, and maintenance allocation.
- Confirm unit boundaries in conversions and evaluate acoustics, light, ventilation, and mechanical systems.
Financing steps
- For TICs and co-ops, obtain written confirmation that a lender will finance the structure and at what approximate LTV and rate.
- Clarify whether co-owners or a co-op board must approve financing or a transfer.
Closing and timing
- Build extra time into contracts for TIC attorney review, lender searches, and co-op board approvals.
- For condos, confirm HOA document delivery schedules so underwriting stays on track.
After closing
- Align your personal insurance with the building’s master coverage and the governing documents. Confirm liability and contents coverage.
How Madison Hunter supports your decision
You deserve a clear, step-by-step path through SoMa’s ownership options. Madison Hunter pairs local condo and loft expertise with a concierge process that helps you line up the right lender, review the right documents, and avoid costly surprises. If you are leaning toward new construction, our Urbane SF buyer channel offers a one-year HOA incentive for qualifying buyers, along with access to developer relationships and a streamlined closing experience.
Ready to compare specific buildings, run cost-of-ownership scenarios, and see which path fits your goals? Connect with Madison Hunter to get a focused plan for your SoMa purchase.
FAQs
What is the main difference between a TIC, condo, and co-op in SoMa?
- A condo gives you a deed to your unit, a TIC gives you a fractional interest governed by a private agreement, and a co-op gives you corporate shares plus a proprietary lease.
Is financing harder for a TIC than a condo in San Francisco?
- Yes. TIC loans come from a smaller lender pool with stricter terms and longer timelines than most condo loans, so confirm lender willingness before you make an offer.
How do monthly costs compare across condos, TICs, and co-ops in SoMa?
- Condos have HOA dues for insurance, maintenance, and reserves; TICs follow the TIC agreement and mortgage structure; co-ops have maintenance fees that can include taxes and a building mortgage.
What documents should I review before buying a SoMa loft organized as a TIC?
- Start with the full TIC agreement, current mortgage details, insurance certificates, and any required co-owner estoppels, then add thorough physical inspections.
Which ownership type typically resells fastest in SoMa?
- Condos usually resell faster due to broader financing options and a larger buyer pool. TICs and co-ops can take longer because of lender limits and governance steps.
