---
title: Does HOA loan effect condo owner's financials?
description: What happens if a 10 year HOA loan is taken out by an association and is allocated to all its unit owners, and one of owners sells his/her unit?
---

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# Does HOA loan effect condo owner's financials?

| [Condo Association Loans](https://www.condoassociation.com/blog/topic/condo-association-loans) |  

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## What do you think? Question:

What happens if a 10 year HOA loan is taken out by an association and is allocated to all its unit owners, and one of owners sells his/her unit?  Does that loan have to get paid off at settlement or does the purchaser of that unit have to undertake the balance of that loan?

Incidentally, I've just calculated that with a 10-year loan at 6.25 %, it costs 2.8 times as much as raising monthly assessments to accumulate money in reserves to pay for large expenditures!

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## What do you think? Answers (8)

#### What are your thoughts on this topic?

***Comments and postings are not legal advice**, but are the opinions of our readers. This forum and its contents are being monitored. Please be respectful of each other. *  
  

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### [Can an HOA Board Approve a Major Project Without Notifying Unit Owners?](https://www.condoassociation.com/blog/can-an-hoa-board-approve-a-major-project-without-notifying-unit-owners)

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