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HOA Loans - We are the most trusted source, nationwide for Community Association Lending

hoa loans Since 2007, CondoAssociation.com has been putting together condo associations and HOAs with qualified lending partners that understand the business of community associations. Our HOA lending partners understand the business of community associations and are prepared to help your condo association or HOA get the money it needs.


HOA Loan FAQs

What is a HOA or Condo Association Loan?

An HOA loan is specialized in that it is secured with a community associations' future cash flow produced by condo fees. Lenders normally reserve the right to assess the HOA should it get behind on servicing the loan.

Why would associations need a HOA Loans?

  • Capital repairs and improvements to buildings and common areas.  Examples of this include roof replacement and driveway asphalting. 
  • Litigation Funding - Its not uncommon to pursue litigation against developers and build material manufacturers for construction defects. Litigation funding can provide monies needed to get an HOA through an extending litigation process that may take years.

Who provides HOA Loans?

HOA lending is still a very specialized practice and is mostly local.  CondoAssociation.com alleviates the headache of identifying HOA loan sources for our HOA community our partner lending network. Simply fill out the form and wait for a phone call from a qualified lending partner in 1-2 business days.

How long does it take to get an HOA Loan?

It normally depends on the time it takes for the association to get financial information back to the HOA lenders and the association's attorney to write an opinion as to the association's creditworthiness and legal ability to assign assessments rights the the condo association.  This can last anywhere from 30 - 90 days.

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Typical structure of a Condo Association Loan or HOA Loan

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Condo Association Loans or HOA Loans can be structured differently depending on the needs of the association, but this are the key points in structuring a condo association loan or HOA loan.

  • Condo association loan length is negotiable and depends on the type of capital improvement project (landscaping, roofs, etc.).
  • Banks offer an HOA or condo association line of credit available to draw on to pay for repairs and improvements. When the project is completed, the obligation converts to an amortizing period causing principal and interest payments. HOA credit line periods are typically three months to two years, depending on the project build out period. The Condo Association will provide invoices to receive advances from the credit line. Only the funds used by the HOA or Condo Association will be converted to an amortizing period causing principal and interest payments. The Condo Association or HOA does not pay for funds which they have not used.
  • Amortizing periods are typically not longer than ten years. Longer amortization periods may be possible under certain circumstances.
  • If the Condo Association or HOA knows they will use 100% of the Condo Association loan or HOA loan proceeds, a standard amortizing loan may be suggested to save the borrower interest expense during a line period. In this case, the HOA funds are put into a temporary deposit account, which may earn interest, and funds are released as invoices are presented.
  • There are no prepayment penalties.
  • Fully amortizing. No balloon payments.

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