FAQs

An HOA loan is a financing solution specifically designed for homeowners associations (HOAs) and condominium associations to fund capital improvement projects, repairs, or other community needs. These loans provide the necessary funding upfront, which is then repaid over time by the association.

Minimum requirements:

• Owner occupancy: At least 50% of units must be owner-occupied. 
• Rental restrictions: No more than 50% of units can be rentals or investor-owned. 
• Commercial space limitations: A maximum of 35% of the property can be used commercially. 
• Reserve funds: The HOA needs to maintain sufficient cash reserves. 
• Insurance requirements: Adequate hazard, liability, and flood insurance must be in place. 
• Delinquency rate limits: No more than 15% of units can be more than 60 days past due on HOA fees.  
• Minimum lots and/or homes: [1,000]
• Minimum annual budget: $2 million
• Property: Single, contiguous community with a general manager

Typically, HOAs or condominium associations with a stable budget, reserve funds, and a history of timely dues collection qualify for loans. Lenders also review the association’s financials, bylaws, and board resolutions as part of the qualification process.

HOA loans can be used for a variety of purposes, including but not limited to:

• Major repairs (roofing, plumbing, etc.)
• Infrastructure upgrades (paving roads, landscaping, etc.)
• Emergency repairs
• Reserve fund replenishment
• Community amenity enhancements (pools, clubhouses, etc.)

The process generally involves the following steps:

1. Initial Consultation: Discuss your funding needs with the lender.
2. Submission of Documents: Provide financial statements, budgets, bylaws, and board resolutions.
3. Approval Process: The lender evaluates your eligibility and offers loan terms.
4. Loan Closing: Sign the agreement and receive the funds

Approval times can vary but are typically faster than traditional bank loans. With our platform, you can receive approval within a matter of days, depending on the completeness of the documentation.

Commonly required documents include:

• Current financial statements
• HOA budget
• Reserve study (if available)
• Governing documents (bylaws, CC&Rs)
• Board resolution authorizing the loan

Loan terms can range from 3 to 15 years, with competitive fixed or variable interest rates. Loan amounts are usually based on the project’s size and the HOA’s financial health.

Repayments are typically made through monthly dues or special assessments collected from homeowners. Our loans offer flexible repayment options to fit your association’s budget.

Some loans may include a prepayment penalty, but we offer flexible terms. Check with our team to discuss prepayment options without additional costs.

Our specialized lending solutions cater to HOAs, even if banks have declined your application. We understand the unique needs of associations and provide alternative funding options.

Transparent communication with homeowners is key. Share detailed information about the loan purpose, benefits, and repayment plan. We can provide supporting materials to help you present the plan effectively.

Our loans are structured to minimize financial strain on your HOA. If unexpected difficulties arise, contact us immediately, and we’ll work with you to find a solution.

• Fast Approval: Skip the lengthy bank process.
• Tailored for HOAs: Our expertise is specifically in HOA lending.
• Flexible Terms: Custom repayment options that align with your needs.
• Innovative Solutions: Options to integrate lending into HOA services or leverage regulatory advantages.

Simply contact us or fill out our online inquiry form. Our team will guide you through every step of the process to ensure a smooth experience.