Taxes & Insurance

What are HOA fees and how do they affect buying?

Updated Jul 1, 2026

The short answer

Homeowners association (HOA) fees are recurring dues paid by owners in certain communities or condos to fund shared maintenance, amenities, and reserves. Lenders count HOA dues in your monthly housing costs, so they affect how much you qualify for. Fees can rise over time and special assessments can add one-time charges, so review the HOA’s rules and finances before buying.

Key points

  • Recurring dues for shared upkeep and amenities.
  • Counted in your qualifying housing costs.
  • Can increase and may include special assessments.
  • Review HOA financials and rules before you buy.

Why lenders care

Because HOA dues are a mandatory ongoing cost, they raise your debt-to-income ratio and reduce the loan amount you qualify for. CandidCost’s True Cost engine lets you include HOA dues so your estimate reflects them.

Put this to work

Sources

Every claim above traces to a public government source.

  • T1Homeowners association (HOA) fees and mortgages

    Consumer Financial Protection Bureau · Government / primary · 2024

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  • T1What is a debt-to-income ratio?

    Consumer Financial Protection Bureau · Government / primary · 2024

    View