It’s important for condominium corporations to have adequate operating funds for day-to-day expenses and a sufficient reserve fund for improvement projects and anticipated repairs. Unfortunately, communities sometimes come up short. If a condo has insufficient capital, the project funding may require securing a loan from a lender who specializes in lending to condominium corporations.
Loans help fund a variety of projects and expenses, from common area improvements to maintenance and repairs, when the annual membership assessment cannot cover the expenses. Associa understands the complicated decisions and workload that goes into finding the right financing for your condo. In the following pages, you'll learn how projects are typically funded, what’s required from the lender to approve a loan, the advantages and disadvantages of securing a condo loan, and much more.