HOA Dues and Rules

HOA dues count in your mortgage approval even though they are not paid to the lender. The underwriter adds the monthly equivalent of your regular association dues to your housing payment, so they raise your debt-to-income ratio the same way property taxes do (Fannie Mae B3-6-02). In most cases you pay the association directly, not through escrow. Beyond the dues, the association's rules, special assessments, transfer fees and any violations on the house can change your costs, your plans for the property, and sometimes the loan itself.

How dues affect what you qualify for

Your housing payment for qualifying includes principal, interest, taxes, insurance, mortgage insurance if any, and association dues. Higher dues mean a lower purchase price for the same income. See debt-to-income. When comparing two homes, compare the full payment, not just the price.

Special assessments and amounts the seller owes

• Seller delinquencies are paid at closing so the title company can insure clean title.
• Approved special assessments should be dealt with on purpose in the contract: who pays, and when. An assessment you will owe after closing may also affect underwriting, depending on how it is structured.
• Transfer fees charged by the association on a sale are a real closing cost.

All of these appear on the Texas HOA resale certificate required by Property Code 207.003 (Texas Property Code Ch. 207). Read it during your option period.

Rules that change how you can use the home

Deed restrictions and association rules can limit leasing, short-term rentals, parking, fencing, sheds, home businesses and exterior changes. If you plan to rent the home later, check leasing rules before you buy. Texas Property Code Chapter 209 sets procedures for many residential property owners' associations, including notice before certain enforcement actions (Texas Property Code Ch. 209).

Houses, townhomes and condos are reviewed differently

• Planned unit developments. In a typical subdivision of houses or townhomes where you own the lot, the lender mostly looks at your dues. You insure your own structure.
• Condominiums. The lender also reviews the project: budget, reserves, insurance, litigation and ownership concentration, under investor project standards (Fannie Mae B4-2.1-01). See condo financing.

An association's master insurance policy does not replace your own policy. Ask what the master policy covers and what you must insure yourself.

Fictional example

Fictional example: a buyer loves a house in a Fort Worth area subdivision and treats the HOA like a lawn service. The resale certificate shows an approved special assessment, a leasing restriction, and a violation for a shed the seller built without approval. During the option period, the buyer asks the seller to resolve the violation in a written amendment and pay the assessment at closing. If the buyer had waited until after the option, those points would have been much harder to negotiate.

Common mistakes

• Leaving dues out of the payment estimate.
• Relying on a text message that "the seller will take care of" a violation. Put it in an amendment.
• Confusing HOA approval of a buyer with a mortgage investor's condo project approval.
• Assuming dues are property taxes. They are separate and paid to the association.

Possession and closing terms for the house come from the TREC contract (TREC No. 20-19). For how a Texas closing comes together, see escrow accounts.

Next step

Send me the dues amount for homes you are considering, and I will show you how each one changes your buying range. Book a call, or start an application.

Related questions

• What is an HOA resale certificate?
• Can I get a mortgage on a condo?
• Can I get a mortgage with a high debt-to-income ratio?
• How does a mortgage escrow account work?

Sources

Links checked Oct 21, 2026.

• Fannie Mae Selling Guide, B3-6-02 Debt-to-Income Ratios (Guide published Oct 7, 2026): https://selling-guide.fanniemae.com/sel/b3-6-02/debt-income-ratios
• Fannie Mae Selling Guide, B4-2.1-01 General Information on Project Standards (Aug 5, 2026): https://selling-guide.fanniemae.com/sel/b4-2.1-01/general-information-project-standards
• Texas Property Code, Chapter 207, Sec. 207.003 Delivery of Subdivision Information (resale certificate) (current text): https://statutes.capitol.texas.gov/Docs/PR/htm/PR.207.htm
• Texas Property Code, Chapter 209 Texas Residential Property Owners Protection Act (current text): https://statutes.capitol.texas.gov/Docs/PR/htm/PR.209.htm
• TREC One to Four Family Residential Contract (Resale), TREC No. 20-19, Paragraphs 5, 13 and 23 (form dated May 4, 2026): https://www.trec.texas.gov/forms/one-four-family-residential-contract-resale

About the author: McKade Lively, NMLS 2704474, American Pacific Mortgage Corporation dba True North Home Loans, NMLS 1850.

Equal Housing Opportunity.

Last reviewed: Oct 2026

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