Regardless of the reason why major repairs are needed there are times an HOA may want to borrow funds rather than have a large assessment, it's always a big decision.  

 

Regardless, once the board and or an HOA decides to investigate getting a loan it take planning.  First, some states like Washington requires the HOA to have certain language in their declaration to allow a loan, and specifies a requirement that the owners agree to the loan.

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Look at your options, once the Board  or HOA you decide to attach a major project:

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• Assessment

• Loan

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If a loan is the right path there is a need to look at any legal requirements to authorize an HOA loan and then there is finding a bank that will loan to an HAO, as many will not.  But, good news there are those who will.  For those who do loan to an HOA they will look at several items, like any loan, but it is a different process.  Often the requirements are based on:

 

• The number of units

• Owner occupancy rate 

• Number of assessments within a certain period

• Number of delinquent units

• Amount of funds required

• Loan repayment period

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If your HOA is looking for a loan you may contact us and include:

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• Amount of units in the HOA

• Amount of funds required

• Reason for the loan

• If there is a current reserve study​

• Condo address

• Contact information and best time to contact

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We can offer insight as to some of the banks that will not loan and those who will.

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   Start the process