Frequently Asked Questions
Get clear answers about HOA and Condo Association financing.
A specialized financing solution designed for HOAs, condo associations, and co-op boards. These loans fund large capital projects like roof replacements, concrete restoration, and plumbing upgrades without requiring immediate special assessments from homeowners. Association loans provide communities with the financial flexibility to tackle essential improvements while maintaining affordability for residents through manageable payment plans.
Associations use loans when reserve funds fall short, special assessments would create financial hardship, or urgent repairs are required for safety or compliance. Loans provide payment flexibility by spreading costs over time, allowing projects to begin immediately while maintaining stable monthly dues and preventing financial strain on the community.
Association loans require no personal guarantees from board members, offer flexible reserve requirements, extended repayment terms up to 20–25 years, and predictable monthly payments. Underwriting focuses on the association's financial health, not individual credit scores, making approval more accessible.
- • Roofing & Waterproofing
- • Structural Repairs
- • Plumbing Systems
- • Elevators & Mechanics
- • Marine Structures
- • Hurricane Protection
The association is the borrower. Loan payments are made from association funds through regular monthly or quarterly assessments—not by individual board members personally. This protects board members from personal liability while ensuring community-wide responsibility.
Many lenders specialize in working with associations that have reserve shortfalls. Specialized loan programs support associations with limited reserves, making essential improvements possible even when funds are tight.
Typical loan amounts start around $100,000 for smaller projects and exceed several million dollars for large developments. Financing is tailored to the community’s size, unit count, and project scope.
Loan terms range from 5–25 years. Longer terms reduce per-unit monthly costs significantly. Interest rates are fixed and competitive, based on association creditworthiness and market conditions. Example: A $1,000,000 roof replacement financed over 25 years could cost about $100–$120 per unit per month in a 100-unit condo community.
- 1. Application submitted with required documents
- 2. Review process (financial and project evaluation)
- 3. Approval decision (2–8 weeks)
- 4. Funding – project can begin once the loan closes. Preparation and complete documentation speed up approval.
- • Financial Documentation: Recent financials, delinquency reports, reserve study
- • Legal Documents: Declaration, bylaws, incorporation articles, collection policy
- • Project Info: Contracts, bids, board meeting minutes
- • Management Details: Property management agreement, late assessment list
Instead of facing large lump-sum special assessments, homeowners contribute through regular monthly dues or modest increases spread over time, making projects more affordable and preventing financial hardship.
Association loans are available across the U.S., though terms vary by region. In Florida, these loans are crucial for SB-4D compliance, helping associations finance roof replacements, concrete restoration, plumbing upgrades, elevator modernization, and hurricane-impact windows without large special assessments.
Important Disclaimer
The information provided is for educational purposes only and not intended as financial, legal, or tax advice. Loan terms, eligibility, and rates vary by lender and association profile. Associations should consult with qualified professionals before making financial decisions. HOAloans.com is not a lender, attorney, or financial advisor.