Home Owners Association........friend or foe? What should you know about a Home Owners Association? What does an HOA cover or not cover? If my neighborhood has an HOA, do I have to pay for it? Does an HOA monthly fee affect my ability to afford a home?
Lets talk Home Owner Associations and all the ins and outs. The definition of an HOA is "a corporation formed by a real estate developer for the purpose of marketing, managing, and selling of homes and lots in a residential subdivision." Once a predetermined number of homes/lots are sold in the development, the HOA ownership is transferred to the homeowners and membership is typically a condition to the purchase of the land/home and buyers are not given an option to reject it.
All HOAs are different and cover different things so just because you live in a townhome in north Raleigh does not mean your HOA covers the same thing as a person living in a townhome in Cary or Holly Springs. Townhome/condo community HOAs often are higher than the HOA dues in a detached home community because they often cover more benefits to the homeowner such as exterior and grounds maintenance. Make sure to consult your real estate professional for a full rundown of what is covered by a Home Owners Association when looking to purchase.
Financing can be a big factor with your HOA dues. When your lender quotes you a monthly payment on your good faith estimate, they are only quoting your principal and interest for the loan as well as your escrow amounts for taxes and insurance. Your HOA monthly payment is a seperate payment all together but the amount of that monthly dues payment is taken into consideration towards your ability to afford the home. Take this into consideration especially if you are looking to buy at the upper end of your loan qualification as it may disqualify some properties.
Have more questions about HOAs or looking to buy in Apex, Fuquay Varina, Raleigh, Wake Forest or anywhere in the Triangle, give us a call today......we would love an opportunity to help you.
Author:Chad Wingler Phone: 919-323-2616 Dated: October 17th 2013 Views: 1,237 About Chad: Buying a new house is one of the largest steps a person makes in their life; emotionally, physically...
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When it comes to providing the utmost in personal service to his clients, Peter Kima is on the cutting edge. This family man's demanding work ethic was passed on from his parents. His mother, a first generation German-American, forged a new life in a strange country. His father, who has not missed a day of work since 1972, led by example. Peter does not rest until he's done everything in his power to help you achieve your goals. As a husband and a father, his understanding of the importance of a family's home is reflected in his every move.
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