What Are HOA Dues?
HOA Dues: Regular fees paid to a homeowners association for shared areas, services and reserves.
Also called: association dues, condo fees
HOA dues are monthly, quarterly or annual fees paid to a homeowners or condominium association. They fund shared expenses like landscaping, amenities, building insurance, exterior maintenance and reserves.
How they affect your mortgage
HOA dues aren't usually paid through your mortgage, but lenders include them in your housing payment for your debt-to-income ratio. $300 a month in dues reduces your buying power by roughly $45,000 at today's rates.
What to check before you buy
- The current dues and recent increases
- Pending or planned special assessments
- The size of the reserve fund
- Rules on rentals, pets, parking and renovations
- Any lawsuits involving the association
You'll get much of this in the HOA resale certificate after you go under contract.
Good to know
For condos, lenders also review the association's finances. A condo that doesn't meet guidelines can limit your loan options.