Does your condominium association needs funds for a new roof or other big items

1. HOA / Condo Association Loans (Most Common)These are commercial loans made directly to the association, not individual unit owners.Typical usesRoof replacementStructural repairsPainting, paving, elevators, plumbingInsurance-driven or reserve shortfallsKey featuresNo lien on individual unitsRepaid through monthly assessmentsTerms: 5–20 yearsFixed or adjustable ratesCan be structured as:Fully amortizing loanInterest-only period upfrontLine of credit for phased projectsUnderwriting looks atNumber of unitsOwner-occupancy ratioDelinquency rateBudget, reserves, and assessment historyNo personal guarantees from owners2. Special Assessment Financing (Owner-Friendly Option)Instead of asking owners to write large checks upfront:The association levies a special assessmentOwners can finance their portion monthlyReduces resistance and default riskKeeps unit owners on predictable paymentsThis is especially helpful in senior-heavy or fixed-income communities.3. Reserve Replenishment LoansIf reserves were drained for an emergency repair:Association borrows to rebuild reservesKeeps the condo compliant with lender and insurance requirementsHelps protect unit values and marketability4. Florida-Specific Reality (Important)Given your frequent focus on Florida condos, this resonates strongly right now:New structural integrity & reserve requirementsInsurance-driven roof timelinesOlder associations facing multi-million-dollar projectsFinancing often prevents forced unit sales or assessment shockMany boards don’t realize financing is even an option until it’s explained clearly.5. How to Position the Conversation (What to Say)You can frame it simply:“Rather than a large one-time special assessment, the association can finance the project and spread the cost over time—keeping dues manageable and protecting property values.”That line alone opens the door.6. What Lenders Will Usually Ask ForCurrent budget and balance sheetReserve study (if available)Insurance certificatesDelinquency reportProject scope and contractor estimateBottom LineCondo associations do not have to self-fund roofs or major repairs anymore. Financing:Preserves cashReduces owner pushbackHelps boards stay compliantProtects resale valuesTune in and learn https://www.ddamortgage.com/blogdidier malagies nmls#212566dda mortgage nmls#324329 Support the show