Financing a Pre-Construction Condo in Miami

Financing a pre-construction unit works differently from financing a resale home, mainly because of timing: most of the money changes hands well before a lender can appraise a finished, deeded property.

Key differences from resale financing

• Construction-period deposits are typically paid in cash — most conventional financing applies to the balance due at closing, not the deposits.
• Lenders generally cannot finalize a mortgage until the building has a certificate of occupancy and the unit is deeded, which can be years after the initial deposit.
• Condo-project financing eligibility (warrantability) can affect which lenders and loan products are available once a building is complete — this varies project by project.
• International buyers often use different loan products or larger down payments; some purchases are all-cash.

Planning ahead

Because financing terms and lender requirements can shift over a multi-year construction timeline, buyers relying on a mortgage should revisit financing options as closing approaches rather than assuming pre-construction terms will hold. Diego can point you toward lenders experienced with Miami new-construction closings.