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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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Why Use A Loan For Your HOA or Condo Association?

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Why choose a HOA Loans or Condo Association Loans?

 

Loans Offer an Alternative to Spending Reserves. The capital outlay for major repairs and improvements can overtax a condo association's reserves, requiring special assessments to pay for specific projects or to rebuild reserves. While special assessments may make economic sense, they also impose financial hardship on members and may be difficult to get  approved.

Once approved, the association may have difficulty collecting payments from all its members. Directors may then defer maintenance work - although this can leave them open to charges of negligence, particularly if there are health or safety issues involved. Or, they may try spreading the work out over time - which can raise the final cost of the work, as well as inconvenience residents.

 

On the other hand, borrowing money for repairs or improvements makes all needed funds available more quickly. And since financing work through a loan generally requires only a small increase in monthly assessments to cover debt servicing, there are fewer objections from homeowners.

Did you know HOA Loans and Condo Association Loans are sometimes referred to as Homeowners Association Loans too?

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