Condo Association Loan FAQs

Mortgage and Lending with CondoAssociation

Our association's dam is in need of repair and we would like to get a condo association loan for doing the repairs.  What is a likely rate for a condo association loan? 

The exact interest rates are a function of several variables.  However, the approximate range in today's market is 6.75% to 7.25%.  For a current condo association loan rate quote you can submit the Free Loan Proposal Request Form

We are a Co-Op.  Do we qualify for an Association Loan?

Yes, Community Association Lending is for all types of Associations including: Condominiums, Homeowner Association's, Town-homes, Cooperatives, Timeshares.

Are there any restriction to what our HOA can use a loan for?

Lenders usually work with associations to provide innovative loan structures to just about any application.  Typical reasons for Home Owner Assocation (HOA) loans are to support capital maintenance projects, construction defect litigation, insurance premium financing, purchasing real estate or equipment, land lease buyouts.  

Other solutions include an Association Line of Credit which HOA's can tap at their discretion to increase their cash flow.

What's the difference between an Association Loan and a Line of Credit?

When a Condo Association takes out a loan, the lender provides all the funds in one lump sum.  With a line of credit, a Condo Association qualifies for a credit limit, which they can draw down on and pay back at any time. 

Top 5 Reasons for a Condo Association Loan 

1. Increase cash flow

2. Capital improvements or repairs

3. Purchase of additional property

4. Purchase of units from owners

5. Construction defect litigation

Comments (2)

C Barefield
Pacific Crest Reserves - Mount Vernon, WA

Good Post -

Many times after a Reserve Study associations find that they need more repairs than they have reserves for yet many members can't afford the assessment as a one time payment. This is where your loan program becomes extremely valuable.


Pacific Crest Reserves

premier  provider of Inspections and Reserve Studies to Boards of Directors and Association Managers who represent Condominium  Associations in Island, Skagit, San Juan and Whatcom areas.

Sep 15, 2008 04:29 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Hi, Roger

       We invite you back to ActiveRain.  Log in, leave some comments, write a blog post!

Nov 18, 2017 07:10 PM