How do HOAs work?

How do HOAs work?

When you purchase a home, there’s a good chance you’ll have to pay a homeowners association fee, especially in gated communities, townhouses, condominiums, and other similar planned neighborhoods. The idea is to keep common areas clean and maintained, and there’s usually an HOA board that is responsible for setting the rules and regulations.

Each HOA is different, but most have the same core elements. You’ll typically pay your HOA fees either monthly or annually, and it’s an important factor to consider when you’re weighing your options for a new home. So what is typically included in your HOA fees?

First, the fun stuff Amenities are typically the big perk of living in a community with an HOA. While you lose out on some of the freedom of living without an HOA, you instead get community amenities like a maintained pool, gym, clubhouse, tennis courts, and other amenities. The HOA fees pay for cleaning and maintenance, so—in theory—you’ll always have a clean pool whenever you want to use it.

Protecting the community HOA fees often contribute to insurance for the community amenities, as well as a fund for unexpected repairs to damaged community property—think damage from weather or accidents.

General maintenance Your HOA fees will go toward maintaining the general safety and upkeep of the community. This means things like elevator maintenance for condominiums, snow removal, and trash/recycling services.

Be active in the association There may be a board of directors, but homeowners associations exist for the betterment of the entire community, and every voice matters. HOA meetings—and the amenities they support—provide great opportunities to meet your neighbors and make your community a better place.



First Time Home buyers Programs


Buying your first home can be overwhelming, but the benefits of being a first time homebuyer make it all worthwhile. You will be able to own a home that suits your needs and lifestyle; establish credit; receive tax benefits; and best of all, you can stop throwing your money away on rent.

New American Funding has home loan experts who specialize in first time homebuyer programs. They can help you through the process of buying your first home and securing a first time mortgage.


As a first time home buyer, you may be concerned about keeping your first time mortgage payments low, especially for the first few years. Our mortgage specialists will help you choose the best home financing option, so you can afford your dream home without struggling to pay your mortgage each month. We have a wide variety of competitively priced loan programs for first time homebuyers including:

  • Fixed rate mortgages: The mortgageinterest rate will remain the same on these loans throughout the term of the mortgage for the original borrower. Our popular 30 Year fixed rate mortgage is often the best option for first time homebuyers. Use ourFixed Rate Mortgage Calculator to give you an idea of what your loan may look like.
  • Adjustable rate mortgages: An adjustable mortgage has an interest rate which is adjusted periodically based on a pre-selected index. The advantage of an ARM is that you may be able to afford a more expensive house because your initial interest rate and payments will be lower in the first few years.
  • FHA loans: This is a low interest loan insured by the Federal Housing Administration which is open to all qualified homebuyers. While there are loan amount limits for FHA loans, they are usually sufficient to cover most moderately priced homes anywhere in the country.
  • VA loans: A long term, low or no down payment loan guaranteed by the Department of Veterans Affairs. Restricted to individuals qualified by military service or other entitlements.

Try our mortgage affordability calculator. It will help to determine the amount you can afford to spend on a mortgage each month, based on your current income and expenses. We make the borrowing process easy and convenient for first time homebuyers, by offering competitive rates and minimizing fees, normally incurred with a loan arranged through a broker.

The 10 Step-guide to buying a House

Buying a house may be the most complicated financial process of your entire life. Luckily, we’ve broken it down into 10 straightforward steps:

1. Are you ready to become a homeowner?
Whether you’re becoming a homeowner for the first time or you’re a repeat buyer, buying a house is a financial and emotional decision that requires the experience and support of a team of reliable professionals.

2. Get a Realtor®
In the maze of forms, financing, inspections, marketing, pricing, and negotiating, it makes sense to work with professionals who know the community and much more. Those professionals are the local Realtors who serve your area.

3. Get a mortgage pre-approval
Most first-time buyers need to finance their home purchase, and a consultation with a mortgage lender is a crucial step in the process. Find out how much you can afford before you begin your home search.

4. Look at homes
A quick search on our site will bring up thousands of homes for sale.  Educating yourself on your local market and working with an experienced Realtor can help you narrow your priorities and make an informed decision about which home to choose.

5. Choose a home
While no one can know for sure what will happen to housing values, if you choose to buy a home that meets your needs and priorities, you’ll be happy living in it for years to come.

6. Get funding
The cost of financing your home purchase is usually greater than the price of the home itself (after interest, closing costs, and taxes are added). Get as much information as possible regarding your mortgage options and other costs.

7. Make an offer
While much attention is paid to the asking price of a home, a proposal to buy includes both the price and terms. In some cases, terms can represent thousands of dollars in additional value—or additional costs—for buyers.

8. Get insurance
No sensible car owner would drive without insurance, so it figures that no homeowner should be without insurance, either. Real estate insurance protects owners in the event of catastrophe. If something goes wrong, insurance can be the bargain of a lifetime.

9. Closing
The closing process, which in different parts of the country is also known as “settlement” or “escrow,” is increasingly computerized and automated. In practice, closings bring together a variety of parties who are part of the real estate transaction.

10. What’s next?
You’ve done it. You’ve looked at properties, made an offer, obtained financing, and gone to closing. The home is yours. Is there any more to the home-buying process? Whether you’re a first-time buyer or a repeat buyer, you’ll want to take several more steps.