Board Guide to HOA Loans
As a board or association member, you should have a practical understanding of the loan process. This guide will give you a basic overview of Home Owner Association (HOA) loans.
Loans made to HOAs are unique. They are typically made directly to the association as a corporation, as opposed to each individual member.
The association usually levies a special assessment against members to repay the loan, which includes principal plus interest. Lenders prepare legally binding loan documentation to ensure that boards earmark these funds for loan repayment.