It’s important to understand what HOA fees are and how they can impact your budget when you’re considering buying a condo.
What are HOA Fees?
HOA fees are a regular payment (often monthly or annually) that is made by condo owners to a homeowners association. The money collected is used to pay for the upkeep and maintenance of common areas, amenities and services in the condo community. Here are some of the common expenses covered:
- Maintenance and repair of common areas such as parks, swimming pools, and fitness centers
- Landscaping and lawn care
- Snow removal
- Water, trash, & sewer costs
- Building insurance
- Management fees
The amount of HOA fees you’ll be required to pay will depend on the size of your condo, the services provided by the HOA, and the community’s overall budget. HOA fees can range from a few hundred dollars a year to several thousand dollars a month.
What You Need to Know Before Buying a Condo
Before buying a condo, it’s important to understand what you’re getting into when it comes to HOA fees. Here are a few things to keep in mind:
- Make sure you understand what’s included in the HOA fees. Often when you’re looking at a condo listing, you’ll be able to see an itemized list. If this is not available to you, ask your realtor for a breakdown.
- Ask about any special assessments. In some cases, the HOA may need to collect additional funds to cover unexpected expenses, such as major repairs or upgrades to the community’s infrastructure. These special assessments can be significant, so it’s important to ask about them before you buy.
- Consider the HOA’s budget and financial stability. A well-run HOA with a healthy budget is more likely to provide high-quality services and amenities, while a poorly managed HOA with a tight budget may struggle to keep up with repairs and maintenance.
- Read the HOA’s covenants, conditions, and restrictions (CC&Rs). The CC&Rs will outline the rules and regulations of the condo community, including what is and isn’t allowed when it comes to things like pets, renovations, and parking.
Adding HOA Fees Into Your Budget
Don’t forget that HOA fees are often not included when you use a mortgage calculator, or when you get an estimated monthly payment from a mortgage lender.
Be sure to calculate your monthly mortgage and add your HOA fees on top of that.
You Ready to do This Thing?
At United Faith Mortgage, we are here to help you walk through the home buying process. No question is too great or too small. And we promise to help with zero-pressure.
We’re a family-run company that has a very important Direct Lender Advantage. That basically means we use our own money and make our own decisions within our own walls. There’s no middle man. For you, this often means a shorter turnaround time and a better rate… which can save you monthly and lifelong money, whether you’re refinancing or buying a new home.