Is Your Community Prepared for Lender Reserve Study Requirements?
Lenders Are Asking... Is Your Community Prepared?
Underwriters and financial institutions are increasingly requiring current reserve studies to verify compliance with new state regulations for condominiums and homeowners’ associations (HOAs). These studies are now essential for completing real estate transactions and securing financing.
Without one, communities risk delayed loan approvals, stalled property sales, or heightened lender scrutiny, jeopardizing both financial stability and marketability.
Why Reserve Studies Matter
A reserve study is a financial planning tool that evaluates the condition and remaining useful life of major components such as roofs, HVAC systems, elevators, and infrastructure—and outlines a funding plan for future repairs and replacements. Recent legislative changes, including stricter funding requirements following events like the Surfside collapse, have led lenders to demand up-to-date documentation.
Without a current reserve study, associations face:
- Transaction Delays: Buyers may struggle to secure mortgages without proper documentation.
- Regulatory Penalties: Non-compliance with new standards may result in fines or legal action.
- Unexpected Assessments: Inadequate reserves can force special assessments on homeowners.
How Falcon Can Help
Falcon delivers comprehensive, compliant reserve studies tailored to your community’s needs:
- On-Site Inspection of major components by certified reserve specialists.
- Financial Analysis projecting repair and replacement costs over 30 years.
- Funding Plan designed to meet legal and lender requirements while minimizing homeowner burden.
- Clear Documentation exceeding CAI and state standards.
Our team tracks evolving regulations, ensuring your study is always compliant and lender-ready. Whether updating an existing report or commissioning a new one, Falcon streamlines the process.
Act Now to Avoid Delays
With lender scrutiny at an all-time high, a current reserve study is essential. Don’t wait until a transaction is at risk, contact Falcon today to schedule your study and keep your community compliant, financially secure, and prepared.
