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Homeowner Association Banking

The Federal Savings Bank specializes in providing banking products for Condominium Associations and Homeowner Associations. We offer Treasury Management products, Insurance Premium Finance, Liquidity Revolving Lines of Credit and Capital Project finance products. We work closely with associations, board members, and property managers to provide creative and cost effective financial solutions.

 

Deposit Products

  • Demand Deposits
  • Lockbox
  • ACH (Payments and Collections)
  • Remote Deposit Capture
  • Money Market Accounts
  • Certificates of Deposit
  • Online Banking
  • Reporting Functionality
  • Customer Training

Are you frustrated every time you call your bank because you  have to fight your way through an automated operator that seldom gets you to the right person?  As an Association Banking customer at The Federal Savings Bank, you have direct access to our team of professionals who are dedicated to serving the needs of Condominium and Homeowner’s Associations as well as their management companies.

Liquidity Revolving Line of Credit

Loans of $25,000 or $50,000 and documented as an unsecured demand note reviewed annually
Payments will be interest only based on a floating interest rate
Annual fee of $250 or $500

Credit approval for new customers applying for a liquidity line of credit will be subject to established Condominium Association Banking underwriting standards for new customers. Annual renewals will follow an abbreviated underwriting process to make life easier for you!

 

Insurance Premium Finance

Loans will be considered in amounts from $50,000 to $1,000,000. Term not to exceed 10 months. Take advantage of discounts an insurance company may provide in return for full payment of premiums in advance while retaining the flexibility of monthly payments. Loan proceeds will be sent directly to the insurance company. TFSB will be an additional loss payee, and may also take an assignment of assessments as additional collateral.

Credit Approval for new customers applying for insurance premium finance transactions will be subject to established Condominium Association Banking underwriting standards for new customers. Renewal/repeat insurance premium finance requests will follow an abbreviated underwriting process.

 

Capital Project Finance

Most Capital Project Finance loans will generally begin as a non-revolving line of credit for the construction period. These lines will typically be for six to twelve months. During the draw period, monthly payments will be interest only on the drawn amount. Inspections will be performed pre-construction and post-construction. Larger complex projects may require an interim inspection.

Upon expiration or at the end of the construction period, the line of credit will be converted to a fully amortizing fixed rate term loan. The typical maturity will be between five and ten years. Fifteen year amortizations will be considered on an exception basis for larger projects. Loan length may not exceed the useful life of the improvements being financed

If the project is short-term or small in size, the initial disbursement to the customer may represent the full amount of the term loan. Principal and interest payments would typically begin in the month following disbursement.

Credit approval will be subject to established Condominium Association Banking underwriting standards for new customers and/or projects. Capital Project Finance transactions will be secured by an assignment of assessments as collateral. TFSB will also be named as loss payee on the association's hazard insurance policy.

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