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Home › Forums › Closed Forums › Buying and Selling RE › HOA what percentage of delinquent is acceptable
Personally, I would ignore the 30 day delinquencies. They can be skewed for a variety of reasons and in some months can be quite high. A good example is when HOA fees go up – it can take several months for homeowners to adjust and therefore they will show up on the delinquent list for the delta between the old and new fee rate.
I would watch the 90 days or more category, and from my experience having 5% or less in this category is typical. 10% would start raising my eyebrows, and if you get much higher than that I would start asking questions.
Thanks svelte! This advice was extremely helpful.
More important is reserve fund balances
I’d suggest asking a mortgage broker.
To qualify for a loan on a condo, they require the HOA to meet certain standards. I don’t know what those standards are, but a good loan guy could probably help you understand what to look for.