Why Work with a Loan Broker?
HOA loan brokers fill a unique void. Chances are good most board members are not HOA loan experts. They 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.
Moreover, HOAs are not staffed with professional treasury teams. Large corporations employ teams to focus on optimal financing alternatives. HOAs are governed by volunteer boards with varied backgrounds and interests. As a board member, you should familiarize yourself with some basic information that can be 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 are given a well-presented loan package, they understand the need to be competitive in order to win the loan. Lenders can quickly tell that the request for proposal is serious, well thought out and complete.
A professional loan broker is also uniquely positioned to know which aspects of a proposal are negotiable. Often times, lenders will not put their best foot forward in hopes they are the only provider at the table. Not only do loan brokers by definition imply that more than one lender will be approached, providers know that brokers could also bring them future deals. They want to show up well 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.
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.