hi Ben,
It is my understanding that because the HOA fees are subject to changes and assessments and is a separate entity from the Bank and Mortgate, it cannot be included as part of your loan.
I also thought that this would be a great idea and make payments easier for my clients but unfortunately it could not be done.

Hi Ben:

Cheryl Bower is correct. HOA dues cannot be impounded. Your best bet is to set up auto pay for your monthly dues. However, at least with FHA loans, there are special concessions your Realtor can negotiate for such as Cheryl did. In this case a check was paid directly to the Home Owner's Assoc. for 12 months of the buyer's dues.

Also, property taxes, depending on the lender, are often off slightly. Sometimes the impounds are calculated based on the seller's tax rate and sometimes they are calculated on a straight 1.25% of your purchase price. Once your loan has closed and the tax records are updated with your information, i.e., purchase price, you can go back to the lender with your tax bill to have them adjust your tax impounds.

I'm happy to answer more questions. The best way to reach me is my cell at (415) 812-9508 or by email at sue@ashwellflorence.com

It isn't that the banks want to make a mistake but be sure you check them yourself. Ask the tax rate and how many months they are impounding in advance. Ask about if there is Mello Roos and if so how long it has to go before it is paid off. Some will allow you to pay it off.

Hi Ben,

I don’t believe that HOA dues are typically impounded since they are due monthly. It might be possible depending on the lender.

I negotiated for a recent condo buyer that the seller include a credit for 1 year of HOA dues. This helped my client in that for the next 12 months she won’t have to worry about HOA dues since they’ve been paid in advance. I do know that several lenders won’t allow this but this particular FHA lender did.

I’m happy to recommend a couple of excellent mortgage brokers that I work with if needed.

Best wishes,


Cheryl Bower, Realtor , GRI, ABR
Cell 415.999.3450
Zephyr Real Estate
Cheryl@cbower.com http://www.cbower.com
DRE#: 01505551

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