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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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Buying a Condo? See FHA Spot Loans

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Weaving through the myriad of guidelines along the road to an FHA loan for a condominium, you run into a roadblock that says the entire condo project must be FHA approved.

You could ask the homeowners association to apply for FHA approval and change their bylaws, but if there is little or no chance of them making the effort, then you could try an FHA spot loan.

FHA created the spot loan provision specifically for such an occasion. Of course, there are still many guidelines that determine if a condominium project will qualify for an FHA spot loan:

  • The homeowners association cannot have a right of first refusal restriction on sales.
  • Condominiums must provide undivided ownership of common areas by unit owners.
  • The condominium project cannot be subject to additional phasing or annexation.
  • No special assessments or legal action can be pending against the association.
  • Common areas must be under the condo association's control for at least one year.
  • At least 90 percent of the total units in the condo project have to be sold.
  • At least 51 percent of the total units in the project must be owner-occupied.
  • No adverse environmental factors affecting the project or units are allowed.
  • No single entity can own more than 10 percent of the total units in the condo project.
  • The units must be owned in fee simple or held under a lease hold acceptable to FHA.
  • For projects over 30 units, no more than 10 percent of the units can have FHA loans, and for projects of 30 units or less, no more than 20 percent of the units can have FHA loans.

The FHA spot loan program is designed to provide you with an opportunity to purchase a unit in a non-approved condominium project where FHA involvement is limited. It's not to be used to try and circumvent the general requirement that a condominium project be approved before a mortgage on a unit can be insured for an FHA loan.

You are not expected to research all the items listed above for compliance. It's the job of an FHA approved lender to make sure all the program requirements are satisfied to fund a spot loan.