Fast, Flexible, HOA Friendly Loans
1
Connect Financial Account Data
We use Mastercard to securely connect an HOAs financial account data to its loan application and immediately verify income. This eliminates the slow frustrating process of manually sharing bank statements and other documents. Its fast, simple and secure.
2
Document collection
Automated retrieval of HOA financials, bylaws, budgets, and insurance docs. To avoid delays or problems we recommend the association engage legal counsel early in the borrowing process.
3
Underwriting and Risk Assessment
Specialized underwriting team reviews HOA governing documents, reserve studies, and delinquency rates.
4
Loan Issuance
Funds disbursed via ACH or wire transfer. With direct access to capital, HOAs can swiftly start and complete projects, reducing disruptions and improving community satisfaction.
FAQs
Questions? We’ve Got Answers
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:
- Initial Consultation: Discuss your funding needs with the lender.
- Submission of Documents: Provide financial statements, budgets, bylaws, and board resolutions.
- Approval Process: The lender evaluates your eligibility and offers loan terms.
- Loan Closing: Sign the agreement and receive the funds
We were already a fast HOA lender – now we’re even faster. Powered by our partnership with Finicity, a Mastercard company, this isn’t just an upgrade; it’s a game-changing evolution for the HOA industry.
Open banking eliminates the need for HOAs to manually gather and submit financial statements.
Real-time financial data allows lenders to offer more competitive rates and tailored loan structures..
Helps HOAs access capital they might otherwise be denied.
Knowledge Hub
To educate HOA boards, property managers, and financial advisors on financial management, lending, and regulatory compliance
