1. HOA / Condo Association Loans (Most Common)

These are commercial loans made directly to the association, not individual unit owners.

Typical uses

Roof replacement

Structural repairs

Painting, paving, elevators, plumbing

Insurance-driven or reserve shortfalls

Key features

No lien on individual units

Repaid through monthly assessments

Terms: 5–20 years

Fixed or adjustable rates

Can be structured as:

Fully amortizing loan

Interest-only period upfront

Line of credit for phased projects

Underwriting looks at

Number of units

Owner-occupancy ratio

Delinquency rate

Budget, reserves, and assessment history

No personal guarantees from owners

2. Special Assessment Financing (Owner-Friendly Option)

Instead of asking owners to write large checks upfront:

The association levies a special assessment

Owners can finance their portion monthly

Reduces resistance and default risk

Keeps unit owners on predictable payments

This is especially helpful in senior-heavy or fixed-income communities.

3. Reserve Replenishment Loans

If reserves were drained for an emergency repair:

Association borrows to rebuild reserves

Keeps the condo compliant with lender and insurance requirements

Helps protect unit values and marketability

4. Florida-Specific Reality (Important)

Given your frequent focus on Florida condos, this resonates strongly right now:

New structural integrity & reserve requirements

Insurance-driven roof timelines

Older associations facing multi-million-dollar projects

Financing often prevents forced unit sales or assessment shock

Many boards don’t realize financing is even an option until it’s explained clearly.

5. How to Position the Conversation (What to Say)

You can frame it simply:

“Rather than a large one-time special assessment, the association can finance the project and spread the cost over time—keeping dues manageable and protecting property values.”

That line alone opens the door.

6. What Lenders Will Usually Ask For

Current budget and balance sheet

Reserve study (if available)

Insurance certificates

Delinquency report

Project scope and contractor estimate

Bottom Line

Condo associations do not have to self-fund roofs or major repairs anymore. Financing:

Preserves cash

Reduces owner pushback

Helps boards stay compliant

Protects resale values


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There are now more loans with interest rates over 6% than those with rates under 3%. 40% of the volume closed were refinances, and 30% of the loans done were NON-QM loans. There was a 10% drop in mortgage volume at the end of 2025, with a drop in interest rates.
With 1.4 trillion in credit card debt, it seems that 1.4 trillion in credit card debt may be the reason for the refinancing.

It is interesting that the NON QM loans captured so much of the closed business, and will only grow more in 2026

Popular program is the bank statement loan, which does not require tax returns, 1099's or W-2s

If you are looking at doing a rate term refinance, remember to look for a 2% drop with no points

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💡 Option 1 — Cash-Out Refinance
Meaning: Replace your current mortgage with a larger loan and take the difference in cash. Bankrate

Often lower interest rate than a second mortgage because it replaces your first mortgage. Rocket Mortgage

Can consolidate debt (e.g., high-interest credit cards) into one loan. Bankrate

If you refinance to a lower rate, you can reduce monthly payments while getting cash. Sunflower Bank

When it might make sense:
✔ You currently have a higher interest mortgage (e.g., 7%+) and could refinance into ~6%
✔ You want a single payment
✔ You’re using the cash for productive purposes (debt consolidation, home improvements)

🪪 Option 2 — Second Mortgage / Home Equity Loan (HELOC)
Meaning: Take out a loan on top of your existing mortgage without replacing it. Better Mortgag

Keeps your current mortgage rate and terms if they’re favorable. Better Mortgage

You borrow only what you want — no resetting your main mortgage.

Often easier/faster to access cash than a full refinance.

🔁 Option 3 — Reverse Mortgage
Meaning: Available only if you are typically 62+ — you borrow against home equity and don’t make monthly principal/interest payments. Balance is due when you move or pass. FHA


Can provide steady cash flow or a lump sum with no monthly mortgage payments.

Useful in retirement when income is fixed.

When it might make sense:
✔ You are retiree near retirement
✔ You want to boost retirement income without monthly payments
✔ You don’t plan to leave the home as a large inheritance

📊 Which Option Should You Consider (High-Level Guidance)
➡ If your goal is lower monthly payments + access to cash:
→ Cash-out refinance could be ideal if today’s rates are lower than your current mortgage.
➡ If you want cash but want to keep a great existing rate:
→ Second mortgage or HELOC may be better than resetting your core mortgage.
➡ If you are 62+ and need income without monthly payments:
→ Reverse mortgage might be worth exploring but only with deep planning (especially for heirs).

🧠 Bottom Line (2026 Real-World Thinking)
✔ Mortgage rates are lower than recent highs but not back to historic lows, meaning refinancing could still save money if your current rate is significantly higher than ~6%. Rocket Mortgage
✔ Cash-out refinance is often cheaper than a second mortgage because of lower interest, but you must be okay restarting your loan term. Rocket Mortgage
✔ Reverse mortgages are specialized tools — great for some retirees but not suited to everyone. FHA

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