HOA Letter for Refinance
· Updated
Fill in the highlighted fields to create an HOA letter for a lender, appraiser or underwriter. Click any field to type your details, then copy the letter. Lenders often send their own questionnaire, which the association may need to complete as well.
[Date]
To: [Lender Name], Attn: [Lender Contact]
Re: HOA information for [Owner Name], [Property Address], loan [Loan Number]
[Association Name] provides the following as of [Effective Date]:
- Regular assessment: $[Assessment Amount], paid [Payment Frequency]. Paid through: [Paid Through Date].
- Past-due balance, late fees or unpaid special assessments: $[Past Due Amount].
- Pending special assessments: [Special Assessment Status].
- Legal actions or liens involving the unit: [Litigation Or Lien Status].
- Master insurance in force with [Insurance Carrier], policy expiring [Policy Expiration].
- Association contact: [Association Contact], [Contact Details].
This letter reflects association records on the effective date and is provided for the lender's use in connection with the loan named above.
[Preparer Name]
[Preparer Title], [Association Name]
What this letter does
A refinance lender wants to know that the owner is current on assessments and that the association is financially sound. An HOA letter provides that information so the loan can close.
What lenders commonly ask for
- Assessment amount and payment status.
- Any lien, delinquency or special assessment.
- Pending litigation.
- Insurance details.
- Reserve and budget information for condos and planned communities.
- A completed questionnaire, which is separate from this letter.
Estoppel or letter?
Some lenders accept a simple letter, and others require an estoppel certificate or the state's official statement. Ask the lender what they need, and see the closing letter vs estoppel comparison. On a sale rather than a refinance, the HOA closing letter and paid assessment letter do the same job for the title company. Some lenders accept a letter of good standing that confirms the owner is current.
Owner tips
Request the letter early, pay any open balance first and give the association the lender's contact and deadline. For a request template, see the clearance letter.
Common questions
Who prepares it?
The manager or a board officer. Owners cannot write it themselves because it comes from the association.
Does the HOA charge for it?
Often, and some states cap the fee. Ask in advance.
This page gives general information and sample wording. It is not legal advice, and requirements differ by state and by association.