Advantages and Disadvantages of Taking
Out an Association Loan
It's essential to weigh the pros and cons of securing a loan for your
association. The advantages include:
• Homeowners can pay their share over time to reduce the immediate
impact on their personal finances instead of making one lump
sum payment.
• Needed repairs or improvements can be completed quickly.
• Helps maintain property values by allowing structural problems to be
addressed and repaired quickly.
• Spreads out the cost of common area improvements over time
and assigns the cost of those improvements to the people who are
benefitting from them the most.
• Allows repairs to be performed at current pricing.
• Individual units can be bought and sold with no impact on the loan.
• Members' personal credit is not impacted by the HOA loan.
There are some disadvantages, too, including:
• Incurred interest over the term of the loan.
• Ongoing service fees.
Consider Associa Financial Solutions, Inc. In the same way a community
may want a specialist to support their legal needs, an association
requires someone with expertise to guide them on funding options
and provide them with solid advice on the best loan options. Associa
Financial Solutions Inc. has that expertise and wants to help your
community find the most affordable and best option for funding
your projects.
