Overview
HOA fees are mandatory in condominiums, townhomes, and many planned communities. They range from /month for a minimal-service neighborhood to -,200/month in luxury or high-amenity communities. Including HOA fees in your affordability calculation is essential -- lenders count them in front-end DTI.
HOA fees are mandatory in condominiums, townhomes, and many planned communities. They range from /month for a minimal-service neighborhood to -,200/month in luxury or high-amenity communities. Including HOA fees in your affordability calculation is essential -- lenders count them in front-end DTI.
What You Need to Know
- HOA fees must be included in front-end DTI -- lenders count them as housing costs
- HOA range: -/month (basic), - (mid-range amenities), -,200+ (luxury)
- HOA fees can increase annually -- budget for 3-5% annual HOA increase in affordability planning
- HOAs can impose special assessments for major repairs -- budget for these contingencies
- For the same monthly payment budget, condo HOA fees reduce the mortgage you can afford
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