HOA (Homeowners Association)
Monthly fees for shared-property communities (condos, townhomes, planned developments) covering common area maintenance, amenities, and building insurance. HOA fees are included in back-end DTI by lenders, reducing the loan amount you qualify for. High HOA fees can meaningfully reduce buying power.
How does this affect your loan? Estimate self-employed qualifying income with the
DTI calculator, or read the
self-employed mortgage guide.
Related terms
- Primary residence — The home a borrower lives in as their main residence. Lenders apply the most favorable terms to primary reside…
- PITI — Principal, Interest, Taxes, and Insurance — the four components of the full monthly housing payment. Principal…
- Appraisal — An independent assessment of a property’s market value performed by a licensed appraiser hired by the lender.…
- Escrow — An account managed by your loan servicer that collects a portion of your monthly payment to cover property tax…
- Title insurance — Insurance protecting the lender (and optionally the buyer) against claims against the property’s ownership his…
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Sources
Educational definition only — not financial, legal, or tax advice. Programs and limits change; verify current terms with a licensed professional.