Episode Description
HOA loan approvals aren’t guaranteed. Here’s why more communities are being turned down…
✅ Is a Reserve Study right for you? 👉 https://www.reservestudy.com/
Today, we have two industry professionals, former managers, both with the prestigious pcam credential, and they're both now in the banking industry, Michelle Underwood and Marcy Kravit. We asked them to join us on the show today because we had a situation where one of our clients with a lot of deferred maintenance and almost no money, didn't like the idea of a special assessment, and so they reached out to one of the more prominent Community Association financial institutions, and the deal was they were initially denied, which I understand is more and more common, and after some discussion and clarification and adjustment, they were finally approved. But it wasn't easy or straightforward, and it's a lesson that you need to hear.
Chapters:
00:00 Why are HOA loans getting denied more often?
00:55 What problem are HOAs facing when funding major projects?
03:05 Why do banks reject associations with poor planning?
06:55 Why are reserve studies now critical for loan approval?
08:23 How does deferred maintenance impact loan eligibility?
11:29 What financial documents do banks review first?
14:19 What delinquency levels make HOAs too risky?
15:49 How long does the HOA loan approval process take?
18:25 Why do loans still require special assessments?
20:21 How can insurance costs impact loan decisions?
21:24 Ad Break - OurFiPhO.com
21:55 What are the automatic disqualifications for HOA loans?
25:04 What are typical loan terms for HOAs?
26:50 Why can a loan hurt your association’s marketability?
27:56 Are HOA loans becoming harder to get approved?
29:39 Why do board decisions impact homeowners’ lives directly?
30:42 What should HOAs look for in a lending partner?
33:19 What is the most important takeaway for HOA boards?
The views & opinions expressed in this program are those of the Hosts & Guests, intended to provide general education about the community association industry. The content is not intended to provide specific advice or recommendations for any individual or organization.
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