Although businesses have access to a wide array of financial products, condominium and homeowner associations are much more limited. Most condominium and HOAs can qualify for a line of credit, a term loan or a combination of the two. The ideal loan type is dependent on the association’s needs.

For example, if an association is facing a short-term funding gap that should be remedied within a year, a line of credit may be a perfect solution. Lines of credit are also used for rainy day types of borrowing. When a condominium or HOA has depleted a reserve account and needs breathing room for unexpected expenses, a line of credit may be ideal. Typically, interest is only paid when funds are actually used.

On the other hand, longer-term projects such as land acquisition or structural repairs may be better suited for term loans. Like mortgages, term loans are funded in their entirety at loan closing. The condominium or HOA then repays interest and principal over a specific period of time or “term”. In some cases, a combination of a term loan and a line of credit may be the solution. In all cases, lenders will be looking at a variety of detailed financial information to determine how the debt will be repaid.

Arch Capital Solutions acts as an advocate for your HOA. We have relationships with lenders who specialize in HOA loans.

In many states, the board may actually have a fiduciary duty to make financial decisions that are in the best interest of their members. Arch Capital Solutions can satisfy those fiduciary duties acting as the HOA’s financial advisor. We help HOAs obtain financing and choose the best proposal from multiple lenders. Contact us at 1-239-304-6180 or [email protected]. Or visit us at

Contact us for a free no-obligation consultation.