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

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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3 Types of HOA Loans or Condo Association Loans

  
  
  
  

What are the different types of HOA loans or Condo Association Loans?

HOA Line of Credit is similar in concept to a credit card. An association has a maximum limit it can access. Interest is paid only on the money used. The money can be prepaid with no penalty. The interest rate is variable, meaning it changes monthly. HOA credit lines normally carry terms up to five years.

Term HOA Loan provides a homeowners association with all funds at once. The interest rate is locked, meaning the payments are the same amount every month for the life of the loan. An HOA term loan can range from 3 to 15 years.

Combination HOA Line of Credit and HOA Term Loan allows the condo association to obtain necessary funds for immediate projects. During the first 12 months, the condo association pays interest only on the amount used. At the end of the 12 months, the balance of the loan converts to a permanent term HOA loan. The term HOA loan can range from 3 to 15 years.

Benefits include:

Funds during the 12-month draw down option are used "as needed." The condo association is not charged for unused funds.

The condo association pays interest only on the amount used. This can help the condo association bridge the collection of a special assessment or increased maintenance fees

There is usually no charge for converting the line of credit to the term HOA loan.

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