Prepaid HOA & Loan qualifying

**tktim** · 04-17-2009, 04:45 PM

If seller has prepaid HOA fees in advance for 2 years, will this help a buyer qualify for a loan? If not would a longer prepaid help, say 3 or 4 years prepaid?

**Thesa** · 04-18-2009, 01:11 PM

No.... usually the HOA and taxes become prorated - and so the buyer will pay the HOA fee and the seller will receive the "refund" of these previously paid fees. Just like taxes - if your taxes are paid - the buyer still pays the taxes from possession to the end of the tax year.

At least that is how it works in Oregon.

**tktim** · 04-18-2009, 03:12 PM

Thanks for the reply. But this is what I want to know: If the seller is willing to pay HOA fees in advance (instead of lowering the condo price) will this help a buyer when they go to the bank to get a loan. I know the banks include monthly HOA fees in their debt to loan ratio analysis on the buyer, so would this make it easier for the buyer to qualify for the loan because there is no HOA fees for a year or years. New condos in the area are selling their units with 12 months or more prepaid HOA fees. They advertize NO HOA fees or ZERO HOA fees. This makes it hard for a reseller who is not offering this freebe.