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hoa loans Since 2007, we have been putting together condo associations and HOAs with qualified lending partners that understand the business of community associations.  CondoAssociation.com is prepared to help your condo association or HOA get the money it needs. 
Simply fill out the form and our banking team will contact you within 2 business days.

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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Residents of a condo association building faced a quandary. Ignored, old and failing pipes in the building could burst at any moment and cause severe water damage. The fix, however, came with a hefty $1 million price the condo association didn't have.
 
And because the condo association had no real collateral,
its condo board members wondered who would loan them the funds to make the overdo repairs.
 
Contractors are now repairing the plumbing. In the meantime, the HOA loan is allowing the individual condo owners to pay for the repairs over a 10-year span instead of having to come up with a large HOA assessment.
 
The HOA loan or condo association loan allowed the group to do all the repairs at once, rather than do it themselves or spread the work out over time.  HOA loans or condo association loans are finding that this market niche can
provide a significant source of business, although it does come with a unique set of challenges, HOA loan providers warn.
 
A Growing Market HOA Loan Market
It's little surprise that banks would be interested in working in this homeowners association market given its numbers. In 2006, 286,000 community associations governed more than 23 million housing units across the United States, with
roughly 57 million residents, according to the Community
Associations Institute.
 
These condo associations and HOAs spend significant money, too. The Community Associations Institute estimates that the annual operating revenue for all
community associations in the United States is more than $41 billion, which condo associations spend for goods
and services-including repairs and maintenance-to keep their condominium buildings, townhouse communities and subdivisions running.
 
Condo Association Loan Challenges
Homeowners associations, HOAs and condo associations are supposed to condo reserve money to
maintain and upgrade the common areas of their condo associations and HOAS. In condominium buildings, this can mean upgrading hallways and replacing condo building roofs. In townhouse communities or housing subdivisions it
may mean sidewalks and parks.  The problem is most
homeowners associations and condo associations do
not do this properly. Its estimated that 90 percent
of all condo associations do not condo reserve enough money to handle repairs. That's why the condo associations need Condo Association Loans or HOA Loans to replace that leaky roof or crumbling driveway.
 
The one piece of collateral a condo association or HOA has is the legal right to levy condo unit owners in the form
of condo association assessments or monthly
condo fees. Holding this right this condo assessment right as collateral,  HOA loan providers or condo association loan providers could put a receiver in place to collect monthly condo assessments or condo fees to pay back the HOA loans if the condo association were to default. Because of this, the HOA loan interest rates may be a bit higher.
 
Condo Association Loan providers must also be prepared
to contend with a revolving voluntary condo boards. But might just create an opportunity to put some of HOA loan providers and condo association loan providers small businesses lending skills to work.

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