How To Get A Mortgage On New Construction Condos In Miami

Securing Miami New Construction Condo Mortgages can be a complex endeavor. Miami’s booming market makes it a prime location for new condominiums, yet traditional lenders often hesitate to finance these properties, labeling them as non-warrantable. This categorization by Fannie Mae and Freddie Mac stems from mortgage regulations by the U.S. Department of Housing and Urban Development, which groups these promising new constructions with less desirable properties. Despite these challenges, alternative financing routes exist, bypassing conventional bank limitations to support your Miami condo purchase.

Navigating non-warrantable condo financing in Miami

Understanding the landscape of Miami new construction condo mortgages: Due to mortgage regulation quirks, the U.S. Department of Housing and Urban Development groups new developments in Miami with less favorable properties. The problem: HUD deems any condo development in which a single owner owns a large percentage of the dwellings (over 20%) to be “non-warrantable.” That means Fannie and Freddie won’t buy these mortgages from lenders; they have to carry the mortgage – and the risks – on their own books.

That has a disparate impact on new condo developments: It takes some time for developers to sell the units. During that time, the condo is officially non-warrantable, and thus ineligible for conventional financing.

Exploring alternative solutions for Miami new construction condo mortgages: Despite banks’ reluctance, numerous companies are willing to finance non-warrantable condos in Miami. You just need to work with an independent broker who can help you look beyond the traditional ‘plain vanilla’ bank lenders.

At DAK Mortgage, we specialize in helping borrowers find the financing to buy or refinance non-qualifying condos of all kinds – including new construction condos in Miami and elsewhere in South Florida.

We also work closely with Realtors and other real estate professionals to help connect buyers with the best possible financing options – and help make sure the deal goes through. Even in the most difficult lending situations.

Exciting new condominiums in Miami

Here are the major newly-developed condominium projects in the South Florida market expected to become cleared for occupancy in 2022 or 2023:

Name	Address	Developer	Expected Completion	Remarks*
Onda Residences	1135 103^rd St, Bay Harbor Islands	CMC Group and Morabito Properties	2023	Luxury bay view living. Prices range from $1.8M to $9.5M+.
Una Residences	175 SE 25^th Rd, Miami	OKO Group	2022	Ultra-luxury living in the heart of the prestigious Brickell district. $1M to $5M range.
Mr. C Residences	2655 Bayshore Dr., Coconut Grove	David Martin, Mr. C., Arquitectonica	2022	Located in the heart of vibrant Coconut Grove. $600k to $3.4M and up. Up to 4 bedrooms.
Aston Martin Residences	300 Biscayne Blvd Way, Miami	G&G Business Developments	2022	The jewel of Biscayne Blvd. A 66-floor ultra-luxury tower with breathtaking views. $750k to $50M+ for multi-floor penthouse suite.
District 225	223 N Miami Avenue, Miami	Related Group	2023	Designed especially for Airbnb and short-term rental investors. Fully furnished. $350k – $700k
Natiivo Miami	601 NE 1^st Ave	Natiivo and Arquitectonica	2022	Convenient downtown location, next to Freedom Tower & Miami Dade College. $410k to $1.5M and up.
Society Residences Miami	398 NE 5^th Street, Miami	Property Markets Group	2022	Airbnb/short-term rental friendly. 5-star operator. Exquisite views. $600ks and up.
Missoni Baia	700 NE 26^th Ter, Miami	OKO Group	2022	Beautiful designer condo in Edgewater. $1M to $2.7M
Monaco Yacht Club & Resort	6800 Indian Creek, Miami Beach	Optimum Development, Lissoni, Arquitectonica	2022	Beachfront living in South Beach’s historic MiMo District. 12-story. $1.4M to $4M+
Ocean Park South Beach	312 Ocean Drive, Miami Beach	Multiplan Real Estate Asset Management	2022	Exclusive South of 5th Neighborhood in Miami Beach. Just 10 units. $2M to $7M.
The Estates at Acqualina	17901 Collins Ave	Trump Group	2022	Luxury tower living in beautiful Sunny Isles Beach. $10M to $13M.

* Pricing and market information is current as of June 2022. Contact your realtor for the most current and up-to-date information.

Understanding non-warrantable properties in Miami

As mentioned, condominiums still under development are non-warrantable under current rules. That means many traditional bank lenders won’t finance them. But there are several other factors that can render a property non-warrantable, as well:

A single person or entity owns a large fraction of the units;
Most of the units are rented out, rather than owner-occupied;
The project allows short-term rentals (i.e., Airbnb);
Pending construction defect litigation;
Inadequate insurance coverage;
Insufficient condo association or HOA reserves;
Too many owners delinquent on their HOA dues, maintenance fees, or assessments;
Fraud or embezzlement on the part of the board;
Pending lawsuits by or against the HOA or condo association that could result in significant legal fees.

Any of these factors is enough to disqualify the property from conventional financing. That doesn’t mean they are bad properties or bad investments. These new Miami condos are being designed, built, and developed by some of the best, most experienced and in-demand architects and builders in the world. They will be great places to live. And — if purchased at a reasonable price — may make great income-producing investments, as well.

Fortunately, there are a number of lenders willing to take on non-warrantable properties. We work with lenders who have a variety of programs designed to help people buy or refinance non-warrantable condominiums.

Our residential loan programs feature:

Easy condominium approval with a limited review process
Files with limited review response in AUS need only a minimum evaluation
Up to 90% LTV primary residences
Up to 75% LTV for second homes
Application to closing in 35 days or fewer

Airbnb investor mortgages in Miami

Miami’s beautiful beaches and long history as a cultural and cosmopolitan entertainment and business center means it’s an in-demand destination for tourists and business visitors, alike. Demand for short-term rental housing is strong.

As you can see from the table, several of these new developments are built and designed with the short-term Airbnb-style renter and investor in mind. Unlike many condo developments that discourage or prohibit short-term renting in any form, Natiivo, District 225, and Society Residences will each allow a great deal of latitude for investors who want to generate income by renting their properties out on platforms like Airbnb, Vrbo, and Booking.com.

Condo association bylaws and covenants are written to allow these rentals. And amenities are designed specifically to accommodate and appeal to these travelers.

While most traditional bank lenders shy away from these properties, we have several loan programs designed especially for short-term rental investors.

Mortgage solutions for special situations in Miami

Sometimes it’s not just the property that’s difficult to finance. DAK Mortgage has mortgage programs specifically designed for borrowers with special situations, too. Call us if you need a financing solution for any of these circumstances:

Non-U.S. citizen
Self-employed
Commission income
Business owner
Non-traditional, foreign-sourced, or difficult-to-verify income
Upwardly mobile: low-income history but recent improvement
No tax returns
Recent bankruptcy or foreclosure
Divorce
Jumbo loan borrowers
Short-term rental investor
Poor credit/no U.S. credit history
Bridge financing
Hard money borrower
‘Asset-rich’ but income-poor
Crypto assets

Solving tough mortgage cases in Miami

Your partner in acquiring Miami new construction condo mortgages: At DAK Mortgage, we specialize in assisting borrowers with financing for all types of non-qualifying condos, particularly new constructions in Miami.

If you’ve been turned down elsewhere, or you have a situation that needs some creative financing or flexible underwriting, we want to work with you. We have a variety of residential loan programs designed especially for people like you.

Contact us today. We’d love to help you get a great loan to buy or refinance your property, in Miami or anywhere else in the U.S.

Frequently Asked Questions on Financing Miami New Condos

What is a Miami New Construction Condo Mortgage?

It’s a specialized mortgage for purchasing condos in new developments in Miami, tailored to the unique financing needs of these properties.

Why are some new condos in Miami considered non-warrantable?

New condos in Miami are often labeled non-warrantable due to factors like a high percentage of units being unsold, the developer’s control over the association, or the potential for short-term rentals, which can affect traditional financing options.

Can I get financing for a non-warrantable condo in Miami?

Yes, though limited, there are banks and financial institutions that understand and provide financing for non-warrantable condos in Miami, often requiring specialized knowledge of these unique properties.