What is the Interest Rate for
an Association Loan?
The loan process for an association loan can take several
months. The reasons include:
• Moving through all the necessary approvals.
• Some lenders may require membership approval.
• If the loan is contingent on a special assessment.
• If the governing documents require membership
approval for the loan.
These various factors prevent the lender from commiting to
an interest rate until approximately five days before closing.
The lender will provide an interest rate estimate which will
be used to set the rate when the time comes to close
the loan.
Consider Associa Financial Solutions, Inc. Associa Financial
Solutions, Inc. will work with the lender to ensure clear
communication of interest rate estimates and a timeline
on the loan application process. The board of directors
should expect the loan process to take approximately six
months, depending on state regulations as related to lending
timelines from application to loan closing.
