Brokers may need to referee a growing split over HOAs’ costs and control
Consumer finance warnings about soaring homeowners association fees have already put brokers on notice. Mortgage Professional America’s recent coverage of LendingTree data – showing millions of owners in major metros paying more than $6,000 a year in dues – struck a nerve among homeowners and industry professionals.
On MPA’s LinkedIn page, reactions to that story revealed a stark divide: for some, HOA payments looked like a smart way to protect an expensive asset; for others, they felt like an expensive, quasi‑government layer that could threaten homeownership itself.
‘If you don’t want an HOA, don’t buy in one’
LouAnn Hansen, a longtime HOA resident, framed her $4,700 in annual assessments as a trade‑off that worked.
“I gladly pay my HOA assessments because I paid good money for my house and I don’t want to live next to a dump,” she said.
She pointed to lawn care, landscaping, sprinkler maintenance, snow removal “to my front door,” and professional management that freed her from owning equipment or worrying about the property while away.
“Outside of the management of the HOA, these are all costs I would have to pay anyway,” she said. “If you don’t want to live in an HOA, then don’t buy in an HOA… For me, I’m in my third HOA and love it.”
Others focused on how those fees interact with closing costs. Banker Amilcar Freire highlighted “the high charges for a condo questionnaire that has an impact on closing costs,” while advisor Tom Kostosky argued there are “no additional costs for a condo than a single family home but for the management company fees,” saying many non‑HOA owners simply failed to budget for long‑term reserves.
‘More draconian than…China and Russia’
For critics, the concerns went beyond affordability. “They are an extra and unnecessary level of government which are more draconian than the Communist governments in China and Russia,” said Frank Ward, who described turmoil and “rebellion which ended in new, reasonable leaders or dissolving the HOA” in communities where he lived.
Karin Ward, commenting as a homeowner and public‑sector worker, focused on the risk of foreclosure for unpaid assessments.
“My biggest concern is for those people who have lost their homes over HOA fees,” she said, calling for HOAs “to be reigned in” and arguing that “strong HOAs that result in people losing their homes sound ludicrous and unequitable especially if these people have paid their mortgage.”
Broader affordability and disclosure questions for brokers
Nationally, roughly one quarter to one third of homeowners now pay condo or HOA fees, with industry and government estimates suggesting around 75 million to 80 million Americans live in association‑governed communities.
The LendingTree study found that in the 100 largest metros, about 17.5 million homeowners paid HOA or condo fees, and 2.6 million paid at least $500 a month.
LendingTree analyst Matt Schulz called $500‑plus monthly dues “a wild number” and stressed how often buyers left such costs out of mortgage calculators.
He said it was “hard to overstate the importance” of full disclosure and urged brokers to help borrowers understand both the dollars and the lifestyle trade‑offs involved in HOA living.
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