Are HOA Fees Part Of Mortgage? | Know The Real Monthly Total

No, HOA dues usually aren’t part of your loan payment; they’re a separate bill you pay to the association on its schedule.

You find a home that fits your price range, then you notice the HOA dues line. The monthly total jumps. That’s when the question hits: are HOA fees part of the mortgage, or are they another bill that rides alongside it?

This isn’t a small detail. It affects your monthly cash flow, your lender’s approval math, and the way you set up autopay after closing.

Are HOA Fees Part Of Mortgage? What your payment includes

A mortgage is the loan you use to buy the home. Your mortgage payment is the amount you send to the loan servicer to repay that loan and pay any escrowed items the servicer collects.

Most borrowers use “mortgage payment” as shorthand for the bundle often called PITI: principal, interest, property taxes, and homeowners insurance. The CFPB’s PITI explainer breaks down the basic parts that can make up a monthly mortgage payment.

HOA dues usually sit outside that bundle. The CFPB’s HOA dues guidance says those dues are usually paid straight to the HOA, not included in the payment you make to your mortgage servicer.

So you can end up with two recurring payments tied to the same home: one to your servicer, one to the HOA or its management company.

How lenders treat HOA fees in total housing cost for mortgage approval

Even when dues are paid separately, lenders still count them when they size the loan. Underwriting is about the full monthly cost you must carry, not only the note payment.

Fannie Mae’s Selling Guide tells lenders to include “association/project dues” in the monthly housing expense entered on the loan application. Those dues can raise your debt-to-income (DTI) ratio and shrink the loan amount you qualify for.

Where you’ll see dues during the buying process

Two closing documents help you spot what is paid to the servicer versus what is paid elsewhere:

• Loan Estimate: an early snapshot of your projected payment and cash to close. HOA dues may appear as a separate recurring cost line.
• Closing Disclosure: the final version with the same split between loan payment and other recurring housing bills.

Escrow is not the default home for HOA dues

Escrow accounts are common for taxes and insurance. Under 12 CFR § 1024.17 on escrow accounts, an escrow account is an account a servicer controls to pay taxes, insurance costs, or other charges tied to a federally related mortgage loan, including charges the borrower and servicer agree the servicer should collect and pay.

That definition explains why some servicers can collect HOA dues in escrow. Still, many keep escrow limited to taxes and insurance and leave HOA dues to you.

What HOA dues pay for and why they don’t reduce your loan

HOA dues are not loan repayment. They fund shared obligations the association handles for the neighborhood or the building. The mix varies, but dues often pay for items like shared-area maintenance, landscaping or snow removal, trash service, building insurance for parts of a condo, reserve funding for major repairs, and on-site management.

Because dues pay for ongoing work, you owe them as long as you own the home—even after the mortgage is paid off.

When HOA dues might be bundled with the mortgage payment

Most owners pay dues directly. A smaller set sees the dues bundled into the same monthly draft as the mortgage. If your servicer offers this, it’s usually spelled out in your servicing setup or escrow disclosures.

If you want a firm answer before closing, ask your lender whether HOA dues will be collected and paid by the servicer. If the answer is no, plan for a second autopay from day one.

How HOA dues change affordability

HOA dues affect affordability in two places: your lender’s DTI math and your own monthly cash flow.

DTI math still counts the dues

Even if you pay the HOA directly, the dues still get added into the housing expense figure on many loan files. That’s stated in Fannie Mae’s housing expense guidance on what gets counted.

Dues can rise after you move in

Many HOAs raise dues as insurance, contracts, and maintenance costs rise. When you shop, ask what the dues were last year and whether an increase is scheduled.

Special assessments can stack on top

An HOA can charge a special assessment to pay for a large repair or a reserve shortfall. It might be a lump sum or a monthly add-on for a set period. If it’s active and documented, a lender may treat it as a monthly obligation during underwriting.

Monthly costs side by side: mortgage versus HOA dues

Putting each cost in the right bucket helps with budgeting and lender conversations.

Monthly housing cost	Who you pay	Usually included in mortgage payment?
Principal and interest	Mortgage servicer	Yes
Property taxes	Servicer via escrow, or local tax office	Often
Homeowners insurance	Servicer via escrow, or insurer	Often
Mortgage insurance (PMI or similar)	Mortgage servicer	Sometimes
HOA dues or condo assessments	HOA or management company	Usually no
Special assessment (one-time or temporary)	HOA or management company	No
Flood insurance (when required)	Servicer via escrow, or insurer	Often
Utilities (electric, gas, internet)	Utility providers	No

Questions to ask before you commit

HOA dues are part of the property, so treat them like a deal term. These questions can prevent a nasty surprise after you’ve mentally moved in.

• What is the exact dues amount and schedule? If it’s quarterly or annual, convert it to a monthly set-aside.
• What do the dues include? Ask for a budget summary and a list of services. If some utilities are included, that can offset other bills.
• Are there active or pending special assessments? Ask the seller and the HOA for anything current, plus votes or proposals tied to big repairs.
• How are dues paid? Confirm whether payment is direct to the HOA portal, by check, or through a servicer-run escrow setup.
• What happens if dues are late? Late fees, collection steps, and lien rules vary by state and HOA documents.

Budget habits that keep dues manageable

Most stress comes from timing. A few habits help.

• Set a monthly set-aside even when billed quarterly. Move one-third of the quarterly amount into a separate pot each month.
• Read the reserve and insurance lines. Thin reserves and rising building insurance can point to higher dues ahead.
• Track dues changes like you track taxes and insurance. If dues rise, update your total housing cost so your budget stays real.

Paperwork checkpoints for current owners

If you already own and want to confirm how dues are handled, these checks are fast:

• Check your mortgage statement. If it lists principal, interest, escrow, and fees only, your HOA dues are separate.
• Check your escrow analysis. If HOA dues are escrowed, they may appear as an escrow item line.
• Review your bank history for HOA payments to the association or management company.

Scenarios and next moves

Situation	What it means	Next move
You pay HOA dues directly each month	Dues still count in housing expense on many approvals	Include dues in your DTI estimate and monthly budget
Dues are quarterly or annual	Lender may underwrite using a monthly equivalent	Divide the total into a monthly set-aside
Your servicer offers HOA escrow	Dues may be collected with the mortgage payment	Get the setup details before the first draft
Dues rose during your home search	Higher housing expense can reduce approval amount	Ask the lender to rerun numbers with the new dues
A special assessment is active	It can act like a second HOA bill for a while	Get the schedule and include it in approval math
You’re refinancing	Dues can affect DTI even when the rate drops	Send the latest HOA statement early
You paid off the mortgage	HOA dues still apply	Keep dues on autopay to avoid late fees

Takeaway that keeps the math honest

HOA dues usually aren’t part of the mortgage payment you send to your servicer, yet they still shape what you can afford and what a lender will approve. Treat dues as a steady housing bill, verify the amount in writing, and plan for increases and assessments.