Why Work with a Loan Broker?
HOA loan brokers fill a unique void. Most board members have relatively little experience when applying for homeowner association loans. These types of financial transactions are complex and unique. Unlike large corporations, HOAs don’t borrow money every day.
Large corporations have teams to focus on optimal financing alternatives. However, HOAs do not employ professional treasury teams. HOA leaders are volunteer boards with varied backgrounds and interests. As a board member, you should familiarize yourself with some simple information found in this HOA Loan guide.
Given the size and importance of these types of transactions, many boards prefer outsourcing the process to an expert. They want an advocate who will help prepare a professional and complete loan package. When lenders see a well-presented loan package, they understand the need to be competitive to win the loan. Lenders can quickly tell that the request for the proposal is necessary, well thought out, and complete.
A professional loan broker is also uniquely positioned to know which aspects of a proposal are negotiable. Often, lenders will not put their best foot forward in hopes they are the only provider at the table. Not only do loan brokers contact multiple lenders, providers know that brokers could also bring them future deals. They want to show up competitively so that a broker will have the confidence to approach them more frequently.
Arch Capital Solutions can make these comparisons as an advocate for your HOA. We have relationships with lenders throughout the country who specialize in HOA loans.