Q: We are a 7 unit association in the State of Maine. We are nonprofit. Can we get a loan for repairs?
A: Not through banks that specialize in condo association loans. Unlike mortgages, condo association loans are secured by the association's cash flow based on monthly owner fees. As a rule of thumb, banks like to deal with associations that have a minimum of 25 units in order to help mitigate the risk of the association not being able to pay back the loan due to owner delinquencies. Most banks require a minimum loan amount of $100,000. Loans are typically for a term of 15 years, unless the association has specific needs.
