Buying a condo at The Shipyard or nearby Bayview waterfront communities is exciting, but financing in these developing neighborhoods works a bit differently than elsewhere in San Francisco. I’m Oliver Burgelman, a local Bayview and San Francisco agent who has guided buyers through the process for over 20 years. HOA health, reserves, insurance, environmental history, and San Francisco taxes can shape your loan options just as much as price and interest rate. With the right strategy, you can budget clearly, avoid surprises, and close with confidence.
Financing a Shipyard Condo: Two Approvals
When you finance a condo at The Shipyard, India Basin, or nearby waterfront buildings, lenders look at two things:
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You as the borrower
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The building as the project
Lenders review HOA reserves and insurance, any special assessments or litigation, and local risk factors like flood zones, earthquake exposure, and the site’s cleanup history. These factors influence the loan type, interest rate, down payment, and insurance costs. The goal is to confirm that the project is healthy, the budget is realistic, and the collateral is insurable.
How to Calculate Your Total Monthly Payment
A clear monthly budget keeps your search grounded and makes underwriting smoother. Beyond principal and interest, make sure to include every recurring cost:
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HOA dues
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Property taxes
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Insurance (HO-6, flood, earthquake)
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Utilities and extras like parking or storage
HOA Dues and Services
Condo dues typically pay for building insurance, exterior maintenance, reserves, common-area utilities, and management. In San Francisco, HOA dues are often higher than the national average, which can impact affordability and debt-to-income ratios. Many Shipyard and Bayview buildings include water, garbage, or internet, but some don’t—so read carefully.
What to ask for:
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Current HOA budget and most recent reserve study summary
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Any approved or proposed special assessments
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Services included in dues vs what you pay directly
Property Taxes and Special Charges
San Francisco property taxes are based on the recorded purchase price plus local levies. The secured property tax rate is roughly 1.17% of the purchase price. The city also charges a graduated transfer tax at closing that varies with the sale price.
Budget tip: Estimate annual property taxes at roughly 1.1–1.2% of the purchase price. Add any parcel taxes or special charges shown on the tax bill during escrow review. For more, see the San Francisco Treasurer’s property tax information and transfer tax schedule.
Insurance, Utilities, and Extras
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Condo Insurance (HO-6): Covers your unit’s interior, personal liability, improvements, and loss assessments.
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Earthquake Insurance: Optional but some condo and co-op buildings in the city will have it; read more about it through the California Earthquake Authority.
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Flood Insurance: Required if the building sits in a FEMA Special Flood Hazard Area. Check FEMA maps or ask the HOA for the master policy.
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Other Costs: Parking licenses, storage, EV charging, or internet can add up quickly—plan ahead.
HOA Health and Lender Approval
Lenders decide if a condo project is “warrantable” based on finances, insurance, occupancy mix, litigation, and other risk factors. Healthy buildings are easier and cheaper to finance.
Warrantable vs. Non-Warrantable Factors
Red flags that can make a project non-warrantable include:
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Inadequate reserves or deferred maintenance
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Significant litigation related to safety or habitability
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Insurance that doesn’t meet Fannie/Freddie standards
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High delinquency rates, low owner occupancy, or too much commercial space
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Phased construction with limited operating history
If a building fails these tests, buyers often turn to jumbo, portfolio, or government-backed loans instead.
Key Documents to Collect Early
Getting HOA documents early can speed up underwriting. You’ll need:
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Davis–Stirling disclosure package (financials, insurance, reserves, litigation)
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HOA questionnaire (occupancy, delinquencies, commercial use, litigation)
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Reserve study or summary
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Evidence of master insurance and endorsements
Loan Options for Shipyard Condos
Conventional Conforming Loans
Best pricing if the project is Fannie/Freddie eligible and within local loan limits.
Jumbo Loans
Useful for larger loan amounts. Guidelines vary by lender.
Portfolio / Non-Conforming Loans
For projects that don’t meet GSE standards. Higher rates but flexible.
FHA / VA
FHA may allow single-unit approvals; VA has its own approved list.
Taxes, Closing Costs, and Cash to Close
Plan for both down payment and one-time closing costs:
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Prorated property taxes
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Transfer tax (paid at closing, varies by price)
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Title, escrow, and lender fees
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Prepaid interest and insurance premiums
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HOA move-in or transfer fees
Appraisals and Pricing in Developing Areas
Appraisers look at recent sales and adjust for new construction, amenities, location within the site plan, and environmental considerations. Limited sales history and ongoing development at The Shipyard can widen appraisal ranges. Lenders pay close attention to sea-level rise planning and Hunters Point cleanup progress, which can influence underwriting.
Timeline and Contingency Strategy
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Align appraisal and loan contingencies with the time needed for project review.
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Request HOA docs early so underwriting isn’t delayed.
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For complex projects, ask if a second appraisal or specialized review is needed.
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Compare down payment and loan structure scenarios early to avoid surprises.
Work With a Local Expert
Success with Shipyard condos comes from sequencing: budget honestly, align with a condo-savvy lender, and request the HOA packet early. From there, it’s all about reserves, insurance, litigation, and clean documentation.
If you want a calm, data-backed process, let’s talk.
I’ll help you evaluate building health, compare loan paths, and structure a clean, defensible offer.
Oliver Burgelman | Vanguard Properties
📍 San Francisco & Marin
📞 415-244-5846
✉️ Contact Me