Reasons Home Loans Don’t Get Approved

Many applications for home loans are declined for the following reasons: (1) The HOA does not have a current reserve study, (2) The HOA does not have a current budget that covers all known and reasonable line items including monthly reserve contributions, (3) The HOA has substantial deferred maintenance with no plan to eliminate it within a reasonable time, (4) The number of assessment delinquencies is substantial, and (5) The HOA is self-managed or managed by inexperienced management company. See: Reasons Lenders Reject Loan Applications from Condominium Owners and Buyers and Lender’s Questionnaire- Purpose.