The Mira, a sleek 39-story residential tower near the Bay Bridge, seemed like the perfect downtown San Francisco dream - until potential buyers discovered a major catch. The modern skyscraper, completed in 2019, has been blacklisted by Fannie Mae and Freddie Mac, making mortgage approval an unexpected nightmare for prospective homeowners.

The property’s issues aren’t about structural damage or collapsing infrastructure, but rather a series of technical complications that have trapped it in bureaucratic limbo. Homeowners’ association repair requests have technically triggered a legal action, causing the building to be flagged for “unresolved litigation” by mortgage giants.

Specific concerns include a non-functional roof-top window-washing unit that leaks fluid, needed repairs to planters and electrical systems, and resident complaints about water filtration releasing “black particles” and potential mold risks. While none of these issues constitute a serious lawsuit, they’ve effectively put the Mira in mortgage purgatory.

Mortgage experts suggest this situation isn’t uncommon for newer developments still under warranty. The building’s developer, Tishman Speyer, remains confident they can resolve the issues and has committed to working with the homeowners’ association through scheduled mediation sessions in October and December.

For potential buyers, this means navigating a complex lending landscape. While Fannie Mae and Freddie Mac won’t guarantee loans, other lenders might still offer mortgages - albeit with higher interest rates and stricter down-payment requirements. The catch? Buyers won’t know about the blacklist until they’ve already begun the mortgage application process.

The situation highlights the increasingly complex world of urban real estate, where a seemingly perfect property can become fraught with unexpected challenges. Prospective homebuyers are advised to conduct thorough due diligence and, as one mortgage broker colorfully put it, “don’t fall in love too fast”.

As San Francisco’s real estate market continues to evolve, the Mira stands as a testament to the intricate dance between development, regulation, and homeownership in one of America’s most dynamic cities.