Pros and Cons of Moving to a Neighborhood with an HOA April 07, 2022 Life at Home
Homeowners’ associations, or HOAs, are organizations consisting of a governing board of resident volunteers who create and enforce rules for a subdivision or planned unit development. If you buy a property within a community with an HOA, you are required to be a member which will happen automatically upon your purchasing the home. There are many varying opinions out there on HOAs, so it’s important you consider whether being part of one is right for you or not.
Pros
Shared Grounds are Maintained
Any common areas in your neighborhood, such as playgrounds and pools, are managed by the HOA. This allows you to enjoy the benefits of these shared community offerings without having to worry about any upkeep yourself. Sometimes, the HOA will even landscape the front yards of any properties, so your lawn may be taken care of—and paid for—by the HOA.
The Neighborhood Looks Nice
Because HOAs have rules for what you can and cannot change about your property, you don’t have to worry about any neighbors’ properties becoming eyesores. Not only does this make the neighborhood look more pleasant for residents, but it can even lead to higher home values. A 2019 study found that homes that are part of an HOA had prices that were, on average, 4% higher than similar homes not in an HOA.
Conflict Mediation and Resolution
If you run into any issues with neighbors, the HOA can help address the situation. If your neighbor has been playing loud music all hours of the night, has an outside dog that barks constantly, or is otherwise breaching HOA rules or acting in a problematic fashion, you can go to the HOA with your concerns and they can act as a go-between to avoid direct confrontation. This is especially helpful if you have addressed the issue directly with your neighbor and no change has been made.
Cons
Fees
HOA dues are a mandatory part of belonging to an HOA, and they may be expensive. They are sometimes collected monthly and other times annually. How high the dues largely depends on your location and the amenities offered by the HOA. Since HOA membership is compulsory when your property is within one’s jurisdiction, there is no way to get out of paying the fees. You should find out how much dues are and determine if keeping up with them will be manageable in addition to your mortgage, utilities, and other expenses.
Strict Guidelines
When you are part of an HOA, you agreeing to follow all rules and regulations. Some people feel that when you own a home, you should be able to do whatever you want to it, and with HOAs, that is not the case. HOAs may set guidelines for all sorts of things, from the color of house paint you use to and what you are allowed to have visible on your lawn, how tall your grass can grow and how many pets you can have. You should investigate the various guidelines set by the HOA and decide if you find them reasonable before committing to buy a property there.
Risk of Foreclosure
In some states, defaulting on HOA fees could lead to your home being foreclosed upon. For example, in California, if dues have not been paid in more than 12 months or the amount owed is greater than or equal to $1,800, your HOA can begin foreclosure proceedings. In other states, HOAs are at liberty to start the foreclosure process regardless of how long dues have gone unpaid or what the outstanding amount is. If you are at all concerned about your ability to keep up with HOA dues in addition to your other expenses, it is likely in your best interest not to move somewhere with an HOA to minimize your chances of foreclosure. At the very least, you should find out what laws are in place in the state you’re looking to buy in regarding HOA foreclosures so you are aware of your rights and when you may be at risk.
If you are considering making a move, contact one of our experienced Loan Officers today to learn more about your mortgage options!
Related Posts
5 Tips for a Fabulous Game Room
Creating a game room right in your own home is a great way to make the most of your space and create a fun atmosphere for making memories with family and friends. With a little forethought and planning, almost any space can become your ideal game room! Follow our tips below to get started. Decide […]
May 17, 2022 Full Post 
5 Tips for a Greener Home Life
Celebrating and preserving the Earth starts right in your own home! In honor of Earth Day, First Home Mortgage is sharing some of our favorite habitat-healthy habits. Install a Rain Barrel Rain barrels are an easy and inexpensive way to store natural rainwater, which can be used to water your garden, lawn, and even indoor […]
April 21, 2022 Full Post 
5 Easy Ways to Make Your Home More Energy Efficient
Making your home more energy efficient is not only good for the environment but also for your wallet. Small changes can make a big difference in your energy bill. Thankfully we live in a time where technology and innovation make changes much easier than in the past. We have the resources to live greener now […]
March 31, 2022 Full Post
Connect With Us
Contact Us
For security purposes, please do not disclose any confidential or sensitive information.
To speak with a loan officer, please see
Find a Loan Officer.
For servicing questions, please call
877-220-0999
(877) 933-3100
6211 Greenleigh Ave Ste 300
Baltimore, MD 21220
Welcome to the Borrower Portal! This is your access point to get pre-qualified, send/receive documents, and eSign Disclosures.
Click ‘Access Borrower Portal’ below if you are:
- Logging in to an existing account to continue with your pre-qualification.
- Logging in to an existing account to send/receive documents, or eSign Disclosures.
- Logging in to complete the email verification process.
Click ‘Find a Loan Officer’ below if you are:
- Creating a new account to get pre-qualified
- Signing into an existing account to get pre-qualified
Once on the desired Loan Officer’s page, click ‘Get Pre-Qualified’ to begin.
Access Borrower Portal Find a Loan OfficerOriginal Article