Modern condominium building

Condo HOA Financeby Lenders-cap

Capital advisory for condominium
and homeowner associations.

Structuring and closing loans to fund capital needs for associations.

Why financing can be better than a large one-time assessment

The biggest benefit is spreading the cost over the useful life of the improvement. Instead of telling 200 owners they each owe an average of $25,000 immediately, the association can potentially spread that obligation over, say, 7 to 15 years reducing to a more manageable monthly payment.

That produces several benefits.

Affordability for owners

A $25,000 to $75,000 special assessment can be very difficult for retirees, fixed-income owners and owners without substantial liquidity.

Fewer delinquencies

Smaller monthly or quarterly payments are generally easier to absorb than a large lump-sum assessment.

Fairness between current and future owners

If a new roof lasts 25 years, there is an argument that owners benefiting from it over the next decade should share the cost rather than today's owners paying 100%.

Repairs can start immediately

The association does not have to wait months or years to collect the entire assessment before commencing work.

Preserves owners' personal liquidity

Owners are not forced to sell investments, take a HELOC or borrow individually to pay the assessment.

Potentially protects unit marketability

A very large outstanding special assessment can complicate sales and scare off buyers.

Keeps reserves available

The association can retain some reserves for emergencies rather than draining the account for one project.

One institutional financing process

The board negotiates one loan rather than effectively requiring hundreds of individual owners to find their own financing.

What is financed?

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Timeline

45 – 60 days
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See the full process

Meet our advisors

Each mandate is led by the advisor who takes the initial call.

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Frequently asked questions

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We work alongside
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Loan calculator

An indicative monthly cost per unit, set against a one-time special assessment. Illustrative only; real terms come from lender quotes.

Indicative monthly cost per unit

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Get real terms
Association profile
Indicative rate range
Strong institutional-quality association
6.50% – 7.25%
Average bankable association
7.00% – 8.50%
Higher-risk association
9.00% – 12.00%
Pricing is affected by
  • Loan amount and maturity
  • Length of the fixed-rate period
  • Assessment delinquency levels
  • Owner concentration
  • Current reserves and operating liquidity
  • Debt service coverage ratio
  • Litigation
  • Insurance coverage
  • Construction complexity
  • Willingness to hold operating and reserve accounts with the lender
Expense
Indicative range
Lender origination fee
0.50% – 1.00%
Lender legal fees
Transaction-specific
Borrower legal fees
Transaction-specific
Engineering or project review
Often required for major works
Reserve study
Required if the existing report is outdated
UCC and documentation fees
Generally limited
Unused commitment fee
Sometimes charged during the draw period

Fees are not included in the payment shown above. They are quoted transaction by transaction once lenders have reviewed the file.
Condominium association property financed through capital improvement lending

Send the reserve study. We will return structured options.

An introductory call and a short document request. There is no fee to establish what the market will support.

Type of financing

Term loans, lines of credit and construction-to-perm facilities, matched to contractor billing schedules.

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What we finance

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What we do

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What secures the loan

The association's assessment revenue, its operating accounts and its own assets — never a lien on an individual owner's unit nor any guarantees from the managing board. Underwriting centers on governance: collections, delinquency, reserve position and authority to borrow.
Condominium tower financed through association lending

45 to 60 days.

A timeline a board can record in its minutes.

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← Process

Initial items needed

Collecting the material a lender needs is the first working step. To open a file we would normally request the following.

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Not every item is required for every association. Send what is on hand and we will tell you what is still missing.

Speak with an advisor
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Prior track record

Construction financings our advisors closed

Ground-up and heavy-rehab construction capital arranged by George, Helmut and Matthew at Lenders Capital Realty Services — the same underwriting and lender relationships now applied to association work.

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Transactions closed by our advisors at a prior firm. Shown as experience, not as transactions of Condo & HOA Capital Advisory.
Residential community financed through association lending

A single focus: association capital.

Association banking, reserve consulting and community association law — lender-neutral by design.

Meet our advisors

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In their words

What our clients say

Remarks from developers and owners for whom our advisors closed financings at Lenders Capital Realty Services.

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Frequently asked questions

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Request a proposal

Four fields and one call. There is no fee for an indication.

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Request received

An advisor replies within one business day.

Please enter a name and a valid email address.

Submission could not be delivered. Please email bastian@lenders-cap.com directly.

Condo HOA Finance Advisory is the association practice of Lenders Capital Realty Services, run by the same advisors.

Division

Condo HOA Finance Advisory

A dedicated practice for condominium and homeowner associations.

Capital improvement funding, reserve establishment and refinancing from $250K to $50M, typically closing in 45 to 60 days.

CAPEX funding Reserves Refinancing
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Parent firm

Lenders Capital Realty Services

International commercial real estate capital advisory.

Acquisition, bridge, construction and permanent debt plus LP and JV equity from $2M to $75M. Over $3.2 billion closed.

Construction Bridge Permanent LP & JV equity
Visit Lenders Capital→