HOA Dues
Recurring fees paid by homeowners in a community with a homeowners association, funding shared maintenance and amenities.
HOA dues fund the operating budget of the homeowners association: landscaping common areas, maintaining shared amenities, paying for insurance on common elements, building reserves for major future projects. Dues are typically billed monthly or quarterly.
Lenders include HOA dues in your PITI calculation for qualification purposes, the dues count against your housing ratio and DTI just like principal, interest, taxes, and insurance. A high HOA payment can meaningfully reduce the loan amount you qualify for.
Beyond regular dues, HOAs can levy special assessments for unexpected major expenses, a roof failure, a lawsuit, a deferred maintenance project. Reviewing the HOA's recent meeting minutes, reserves balance, and special-assessment history before buying into a community is essential homework.
Related terms
Other terms you'll see alongside HOA Dues
The four components that make up a typical fully-escrowed monthly mortgage payment.
The percentage of your gross monthly income consumed by total housing costs (PITI).
A residential development with individually owned homes plus shared common areas managed by a homeowners association.
The percentage of your gross monthly income that goes toward debt payments, including the proposed new mortgage.
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