Have you considered utilizing an HOA loan to improve your condominium complex or subdivision? These types of loans are a perfect solution when your housing community has various capital improvement needs. HOA loans can offer many advantages, including spreading out the cost of improvements needed to tenant’s shared areas, as well as allowing the cost of improvements to be assigned to those who are benefiting from them the most. It can also be used to complete immediate repairs and maintenance quickly, locking in repair prices at current cost and avoiding increasing cost in the future of services and materials.
How does an HOA loan work for different types of communities?
Condo HOA: For this type of HOA, the loan is typically used to complete maintenance or repairs that are beneficial for all of the tenants of the condominium. This can include updates to common areas, fresh exterior paint, a new roof, or other repairs.
Subdivision HOA: Subdivision HOAs typically request loans for long-term capital maintenance, like road improvements, water system upgrades, or a new development, but can also be used for common area projects like facade updates throughout the development, improvements to a community clubhouse, and more.
This type of loan is repaid through the HOA dues that are charged to home/condo owners monthly. A lien is secured on the dues, and we require that the operating account for the HOA be held at our financial institution. Loan terms vary depending on the type of project and amount.
If you have additional questions about HOA loans, one of our expert lenders would love to discuss your options with you! Call us at 406-587-5626.