---
title: Why wont most banks provide loans to a condo association or HOA?
description: Our Condo Association or HOA can get a loan from a traditional bank.  Why is this?
image: https://www.condoassociation.com/hs-fs/file-13172648-jpg/images/fee-resized-600.jpg
---

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# Why wont most banks provide loans to a condo association or HOA?

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

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## What do you think? Question:

![hoa loans](https://www.condoassociation.com/hs-fs/file-13172648-jpg/images/fee-resized-600.jpg)Our Condo Association has contacted several banks, [including the ones that can be contacted directly through u](https://www.condoassociation.com/condo-association-loans/tabid/81563/Default.aspx)s. However, because our Association is comprised of 14 units, no lender will even contemplate giving us a loan. We have several projects we would like to do, one for recaulking/flashing of the building exterior, the rest are for system upgrades and energy efficiency. Total cost of about $34-36k. Our reserves stand around $20k, and of course no one wants to do a special. The building is 8 years old, meets all the % requirements for occupancy, delinquency, and ownership spelled out in most articles and blog posts concerning [HOA loans](https://www.condoassociation.com/condo-association-loans/tabid/81563/Default.aspx). We understand the idea behind spreading around the risk, etc., with larger Associations. We just don't understand why with "so many" lenders originating loans to HOA/Condo Associations, why no institution will even look into providing our Association a loan? Does anyone have any experience or knowledge of a lender that will at least work with us rather than just saying no when I tell them we have 14 units? Has anyone ever escrowed part of the reserves at collateral, in addition to assigning collections rights of the assessments as part of a loan? Thanks ~

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## What do you think? Answers (6)

#### 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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