What are HOA Fees?

Homeowners Association Fees, what are they?

Thinking about buying a house in a Homeowners Association (HOA)? Here are three key things to keep
in mind before (and during) the closing process.

It may affect your mortgage loan. Lenders will consider how buying a property with an HOA might impact your individual financial situation. The required HOA fee could influence your ability to qualify for financing since it affects your debt-to-income ratio. Always maintain open communication with your lender about how HOA costs will impact your finances.

You may already owe money. Sometimes HOA properties are “sold as is.” This means they might come with multiple liens from lenders, municipalities and homeowners associations. Make sure the property is not in collection and request information in writing from the HOA to confirm that there are no outstanding fees or violations.

Determine whether it’s worth it. The value of a homeowners association depends on the person and community. Some HOAs offer attractive amenities such as gardens, community streets, security, gyms, clubhouses, landscaping services and swimming pools. Balance the benefits with the costs and work with
​​​​​​​an experienced agent who will perform complete due diligence to make sure you won’t be blindsided by unexpected rules or fees.

Have questions?  Give me a call!

256.689.2688

ashley@eraking.com