Mello Whaaat? What are Mello Roos?

When a new community is built, living quarters are not the only buildings that are built; parks, recreations, schools, roads, commerce are constructed as well.  The construction is financed through developer bonds which are then paid-off by those who benefit from the new construction.  So, if you are looking to buy a property on a new tract where there are new roads, schools, malls, etc that means you will benefit from the common areas and will have to pay a Mello Roos Tax for the enjoyment of use; you’re paying your share just like your neighbors are paying theirs.  The good news about this fee is that it eventually gets paid-off, the bad news about the tax; it will affect your purchase power.  When getting pre-approved, your lender looks at your debt to income ratios and drafts an approval amount based on those numbers.  Mello-Roos along with HOA fees affects those ratios so it is important to know about these fees for an accurate pre-approval amount. How much do Mello Roos/ HOAs affect pre-approval amounts?  Contact me at or at 858.381.2621 for a detailed explanation. Till next time and happy house hunting.[iframe id=”″]

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