How an Idaho Private Money Loan Can Help You Finance an HOA Property

Homeowners Associations (HOAs) have been a part of the real estate landscape for decades, particularly in condominium and townhouse communities.

But as new construction projects increasingly incorporate shared amenities and communal living features, HOAs are becoming more common in single-family neighborhoods. According to Realtor.com, nearly 70% of new-build listings now include HOA dues.

Considering buying in an HOA-managed community? It’s essential to understand how these associations operate and how they might impact your real estate investment experience.

What is an HOA?

A Homeowners Association is a legally incorporated, private organization created to manage and maintain a residential community. HOAs are governed by a board of directors, made up of homeowners elected by fellow residents. Every homeowner who buys into the community becomes a member of the HOA. Residents agree to abide by the Association’s governing documents, typically including the Covenants, Conditions & Restrictions (CC&Rs), Bylaws, and Rules & Regulations.

Most HOAs also work with a property management company to implement board decisions and handle day-to-day operations and maintenance.

The Benefits of HOAs

HOAs can offer significant advantages for homeowners and investors:

• Uniform Standards: Community rules ensure that all properties are maintained to a set standard, helping preserve curb appeal, neighborhood aesthetics, and quality of life.
• Property Value Protection: Oversight, regulations, and regular maintenance of properties, roads, landscaping, and shared facilities help protect—and may increase—home values.
• Amenities: Many HOAs offer residents access to shared features such as pools, clubhouses, fitness centers, playgrounds, or even golf courses, which boost lifestyle and property value.
• Security & Safety: Gated access, neighborhood watch programs, and lighting maintenance often contribute to a safer environment for homeowners and their visitors.
• Value Back: HOA fees cover common area landscaping, lighting, road and pathway maintenance, and property insurance. For townhome or condo owners, dues also typically cover exterior maintenance like roofing, siding, and painting. Some HOA fees include utilities, making budgeting more predictable.

The Drawbacks of HOAs

Despite the benefits, HOAs are not without challenges:

• Lack of Autonomy: HOAs have the authority to regulate aspects of a homeowner’s property, from landscaping choices to the color of a front door to holiday decorations. Rules for “the greater good” can feel restrictive for some owners or investors.
• Rising Fees: Monthly HOA dues vary widely (the U.S. median is $125/month) and often increase over time to cover inflation and maintenance costs. Special assessments for repairs or emergencies can add financial pressure, especially for community members on fixed income.
• Shared Liability: The burden of major community repairs, legal disputes, or insurance costs affecting the HOA is shared by all homeowners, regardless of the cause of the issue.
• Conflicts: Tensions can and do arise between homeowners, neighbors, and board members. Disputes over rule enforcement, fines, or community decisions can become contentious and impact community spirit.

You Are the HOA

It’s easy to think of an HOA as “them” or an outside entity. However, remember that you are the HOA. Board members are your neighbors. The Association exists to protect your property value and quality of life. If you have concerns or want to influence HOA decisions, consider joining a committee or running for a board position.

Idaho Private Money Loans & HOA Properties

Financing an HOA-governed property can be complex, especially for Idaho real estate investors with unconventional credit situations. That’s where private money lender Gregory M. Russell can help. Unlike traditional lenders, our equity-based loans focus on the property’s value, rather than your credit score or income. This makes us an ideal option for fix-and-flip investors, multiunit rental purchases, borrowers who need to close quickly, and buyers without traditional income proof. With our hard money loan solutions, you can move fast on investment opportunities in competitive local real estate markets. Contact our lending team at 1-888-477-0444 to discuss your financing needs or fill out our easy loan request form today!