No. The incorporated association entity is responsible for the loan thus no homeowner would be personally responsible. The Financial Institution will not place liens on individual properties.
The term length of an HOA loan should be based on factors such as longevity of the project materials, monthly repayment amount, purpose of the loan, and the financial institution’s criteria.
Time frame for funding an Association Loan will depend on the type of loan and document requirements. It would be reasonable for the process to take 21 – 150 days.
Typically, there is no down payment required and 100% of the project may be financed.
A few examples of what a CIRA loan can be used for are; Capital Improvement Projects, Emergency Cleanup Efforts, Earthquake Retro Fit Requirements, Façade repairs, and reserve study required work.
Endeavor Financing Solutions will be available for the Community, Financial Institution, and Management Agency for the duration of the loan term.
All lenders will have different underwriting requirements and guidelines for Community Association loans. They will differ in rates, terms, funding requirements, and various other specifications. The most common criteria are financial stability, number of units, delinquency rates, and number of sponsor-held or investor-held units.