How does the process work?

1. Quick discovery (project, timeline, dues picture). 2) Readiness review (docs below). 3) Term options from lenders. 4) Board selects terms. 5) Closing + draw schedule. 6) Construction draws (often interest-only), then amortizing repayment.

Which projects are eligible?
Capital improvements or repairs that benefit the common interest community: roofing, siding, paving, building envelope, safety/milestone/SB-326 work, elevators, plumbing, windows/doors, energy upgrades. Multi-phase projects are fine.

Association-level or owner loans?
These are association-level loans. The HOA borrows; owners are not individually underwritten.

Do board members personally guarantee the loan?
Typically no. Officers sign in their official capacity; the obligation is the HOA’s. (Your governing documents and state law control—your counsel will confirm.)

What’s the collateral?
A pledge and assignment of assessment revenues and the HOA’s lien/collection rights (not a mortgage on common areas). Lenders may file a UCC on the HOA’s right to receive assessments and set up a deposit/lockbox account.

How will this affect dues?
It depends how you repay: regular assessments, a time-boxed special assessment, or a targeted dues increase. Use our calculators to compare per-unit monthly impact vs a special assessment.

Can we finance fees and soft costs?
Usually yes—eligible budgets often include construction, professional fees (engineering, legal), contingency, and lender/closing costs. You can finance or pay fees up front.

Fixed or variable rate?
Both exist. Many HOAs choose a fixed rate for budgeting certainty; variable rate options (e.g., Prime/SOFR-based) can lower initial cost but move with the market.

What terms are common?
Amortizations often range 5–20 years depending on project life; many loans include an interest-only draw period during construction, then convert to amortizing payments.

Prepayment penalties?
Varies by lender and term (step-downs, none, or yield maintenance). We highlight this in your options summary.

What are lenders looking at (underwriting)?
Budget and cash flow, dues delinquency levels and trends, reserve funding and study, current insurance, litigation or construction defect exposure, governing-document authority to borrow/assess, project scope/bids, and management strength.

Do we need a member vote?
It depends on your CC&Rs/bylaws and state statute (and sometimes on assessment size). Your HOA counsel will confirm whether a board resolution is sufficient or a membership vote is required.

Can we borrow if we’re in litigation or have high delinquencies?
Possibly, but pricing/structure may change and some lenders will wait. If the project resolves the issue (e.g., building repairs), that helps. We’ll triage before pulling credit or engaging counsel.

What documents should we prepare?
Last 2–3 years financials & audits, current budget, A/R aging & delinquency roll, reserve study & policy, insurance certificates, governing documents (CC&Rs/bylaws), recent minutes/resolutions, project scope/bids and engineering reports, any litigation info.

How fast is approval and funding?
A clean, complete package can move quickly from term sheet to close. Draws can be funded as work progresses once the loan is in place.

Can we start work before closing?
Yes, but maintain clear contracts, progress billing, and proof of permits/inspections. We can align draw mechanics with your contractor’s schedule.

What happens if an owner sells during the loan?
The loan stays with the association. New owners pay the same assessments as adopted by the HOA.

Are there tax benefits for owners?
This isn’t tax advice—interest is paid by the association through assessments and isn’t typically deductible by individual owners. Owners should consult their tax advisor.

How do you get paid? Are you the lender?
We’re a facilitator that prepares your package, matches you with lenders, and helps you evaluate options. We may receive a fee from a lender or the association—disclosed up front. (We are not your legal counsel.)

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