Our condo association's dam is in need of repair and our condo board would like to get a condo association loan or HOA Loan for doing the repairs. What is a likely rate for a condo association loan?
The exact interest rates are a function of several variables. However, the approximate range in today's market is about 6%. For a current condo association loan rate quote you can submit the HOA Loan Request Form. HOA Loans and Condo Association Loans are a good alternative to special assessments that may drain condo association members.
We are a Co-Op. Do we qualify for a Condo Association Loan?
Yes, Condo Association Loans and HOA Loans are for all types of Community Associations including: Condominiums, Homeowner Association's, Town-homes, Cooperatives, Timeshares.
Are there any restriction to what we can use HOA loans or Condo Association loans for?
Community lenders usually work with condo associations to provide innovative HOA loan and Condo Association Loan structures to just about any application. Typical reasons for HOA loans and Condo Association Loans are to support capital maintenance projects, construction defect litigation, condo association insurance premium financing, purchasing real estate or equipment, condo association land lease buyouts.
Other solutions include Condo Association Credit Line which HOA's can tap at their discretion to increase their cash flow.
What's the difference between a HOA Loan or Condo Association Loan and a HOA Line of Credit?
When a Condo Association takes out an HOA loan, the lender provides the condo association all the funds in one lump sum. With an HOA credit line, a Condo Association qualifies for an HOA credit limit, which they can draw down on and pay back at any time.
Top 5 Reasons for an HOA Loan or Condo Association Loan
1. A Condo Association Loan Can Increase Condo Association cash flow
2. Condo Associations can make capital improvements or repairs with a condo association loan or HOA loan
3. An HOA or Condo Assocation can purchase additional property with Condo Association Loans and HOA Loans.
4. Condo Association Loans can be used to purchase condo units from condo unit owners or condo developers.
5. A Condo Association Loan or HOA loan can fund a construction defect litigation
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Please note that blog comments and postings are not legal advice, rather only the opinions of our readers.