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Questions and Answers about HOA and Condominium Association Loans

Is an HOA Loan or Condominium Association Loan the same as a Mortgage?

Not even close. A mortgage is typically offered to an individual property buyer and is secured by the lender taking an interest in the real estate being procured with the mortgage. An HOA loan or condominium association loan is much more like a business loan or even a municipal loan. The HOA loan or condominium association loan is secured with future cash flow produced by common fees from the condominium association. Also, the HOA loan or condominium association loan lender protects its interest by reserving the right to assess the HOA or condominium association should it get behind on servicing the loan.

Why would an HOA or condominium association need an HOA loan or condominium association loan?

Any project that requires a large outlay of initial funds can cause the need for an HOA loan or condominium association loan. The most common reason an HOA or condominium association would seek a loan is to perform capital repairs and improvements to buildings and common areas. Common examples of this type of HOA loan or condominium association loan include replacement of a roof or replacing or repairing driveway asphalt.

Another common reason for an HOA or condominium association to seek a loan is to fund litigation against developers and building material manufacturers. Construction defect litigation has grown tremendously over the past few years and, as you might expect, can be rather costly upfront. The process of extended litigation routinely takes years to resolve. An HOA loan or condominium association loan provides the capital to get through the process without burdening community members with the immediate costs.

Will HOALendingSolutions.com lend money to my condominium association?

HOALendingSolutions.com is in the business of lending money to condominium associations like yours. We are very specialized in this form of lending so we are in a position to help you get the money your condominium association needs. Our lending professionals deal exclusively with condominium associations so we already understand the special challenges faced by Property Managers, Board Members, Condominium Association Presidents, and all of the other folks that live and work in condominium associations.

Once my HOA or condominium association applies for a loan, how long before the money is available?

There are many factors that determine the exact time to process an HOA or condominium association loan. However, experience has shown that most HOAs or condominium associations will require one to three months to complete the necessary tasks of providing financial data, seeking legal counsel on the legal ability of the HOA or condominium association to borrow money and assign future common fees to the lender, and for an opinion on the HOA’s or condominium association’s overall fiscal well-being and its creditworthiness. The good news is that HOALendingSolutions.com will assist you with every step of the process. Fill out our simple loan application form today to get the money your HOA or condominium association needs for tomorrow.