Why Home Owners Associations Borrow Money

by | Condominium Financing, HOA Financing, HOA Loan, Loans, Refinance

As homeowner associations age, problems can become more visible and expensive. When faced with significant expenses, many homeowner association boards find their current income and reserve structure insufficient to meet the community’s capital needs. Although HOA board members can mandate special assessments, this may not be the ideal solution.

In these situations, a condo or HOA board may turn to an HOA loan to fund their large capital projects.

A community may respond adversely to funding a special assessment. Or payment collections may not be quick enough to address an issue that requires immediate attention. Whatever the reason, boards may be disinclined to impose a special assessment to raise funds. Arch Capital Solutions can help HOAs acquire the capital they need right away.

Homeowner Associations borrow money for a variety of projects. A partial list includes:

Reasons an HOA may need to borrow money

  • Street Resurfacing
  • Landscape / Lighting
  • Clubhouse or Other Facilities
  • New Equipment Purchases
  • Acquisition of Underlying or Adjacent Land
  • Common Area Improvements
  • Roofing / Paving Projects
  • Plumbing, Heating, and Air Conditioning Replacement


HOA loans have many benefits such as:

Loan benefits for an HOA

  • Smooth Out Assessments
  • Allow Members to Pay Smaller Amounts Over Time
  • Quick Funding – No Need to Wait on Collections
  • Guaranteed Funding Amount – Eliminate Chance of Short-Fall
  • Lenders do not place liens on individual units

When properly used, an HOA loan can provide a much-needed financing solution that allows the board to complete projects without burdening owners with cash assessments. 

Success-based fee structure:

At Arch Capital Solutions, we believe our results speak for themselves. We only invoice our clients after successfully closing their loans. We never charge an hourly or retainer fee, and we are 100% there to help and support the association through the entire loan process.

Contact us today. Let’s discuss funding solutions for your association!


Arch Capital Solutions specializes in arranging loans for homeowners and condominium associations throughout the country.