Buying a new construction condo in Florida involves two funding timelines: deposits paid during construction and a purchase mortgage that typically funds at closing. Planning both helps you understand how much cash to commit now, what to retain and which financing conditions must be resolved before delivery.
Key Takeaways
- Two reviews matter: Your personal qualification and the condo project must both fit the loan program.
- Plan deposits separately: The purchase mortgage normally funds at closing, not at earlier construction milestones.
- Review the specific building: A new or branded development can have financing options, but its completion, operations and project documents determine which paths fit.
- Budget beyond the down payment: Allow for closing costs, reserves, appraisal risk and possible delivery delays.
Bennett Capital Partners Mortgage Brokers specializes in financing individual units in new condominium developments across Florida, including Miami luxury towers, boutique buildings and branded residences. This guide walks through pre-construction condo financing from the purchase contract to the developer's closing notice, with practical checks for your loan, building and remaining cash.
How new construction condo loans in Florida work
For an individual buyer, the loan generally finances the unit purchase at closing. The developer's construction financing pays for building the project. Your scheduled contract deposits normally come from other documented funds, so arrange those funds before committing to a deposit schedule.
The mortgage has two parallel reviews: your income, assets and credit, and the condominium project's eligibility. Begin both early enough to identify a funding gap or building issue while you still have time to consider your options.
Financing luxury condos and branded residences
For a pre-construction purchase in Miami, Brickell, Edgewater or elsewhere in Florida, the starting point is your actual unit, contract and intended use. Bennett Capital Partners helps connect those details with a mortgage path for a primary residence, second home or eligible investment property.
For luxury and hotel-affiliated residences, review the legal condominium structure, rental program, hotel operations, commercial components and any master association. A brand name alone does not determine whether a building is residential, non-warrantable or a condo-hotel. A larger loan amount and the building's eligibility are separate questions.
From pre-construction contract to mortgage closing
Before signing or paying deposits
Assess financing feasibility, the contract's payment schedule and your cash budget. Ask an attorney about financing contingencies and deposit consequences. An early preapproval will need updating as delivery approaches.
When delivery comes into view
Refresh income and asset records, obtain current project documents and coordinate the appraisal. Match the rate-lock period to a realistic closing date and identify outstanding building conditions.
When the developer calls for closing
Confirm final borrower and project approval, occupancy readiness, insurance and title conditions. Reconcile paid deposits, loan proceeds and the remaining funds with the settlement agent.
For program options and a review of your transaction, visit our Florida condo loans page. This article focuses on the new-development purchase process.
Explore New Construction Condo Financing
Financing for buyers of new development condos, luxury residences and pre-construction units.
- Loan Options
- Estimated Payments
- Property Review
Will the new condo building qualify for financing?
A newly built condo can qualify for conventional financing. Ask which project review applies and which conditions remain open. The answer should identify the specific issue, such as sales mix, completion, insurance or project operations.
- Presales: Under Fannie Mae's new-project Full Review rules, at least 50% of units in the project or applicable legal phase must be conveyed or under contract to principal-residence or second-home purchasers. Investor contracts do not satisfy that particular test.
- Completion: The review considers substantial completion, occupancy authorization and completion assurances where applicable. The unit must be available for immediate occupancy at loan closing.
- Project structure: Review insurance, legal documents, budgets and operating arrangements, including hotel use or rental programs that can affect eligibility.
See Fannie Mae's new-project Full Review requirements and ineligible-project guidance for the applicable conditions. Fannie Mae retired Florida's mandatory PERS submission requirement in its March 2026 lender letter; project underwriting still applies. Our Fannie Mae condo guidelines guide covers the broader rule changes.
What if the building is not agency-eligible at delivery?
Start with the reason. A missing document or an unmet sales threshold calls for a different response than a safety, title or hotel-operation issue. Ask whether the condition can be resolved within your contractual closing window.
Where appropriate, compare non-warrantable condo financing based on that specific issue. An alternative program may change the cash required, interest cost, documentation or timeline. Obtain written terms before relying on it. If financing remains unavailable, discuss extension and contract options with your attorney; neither an extension nor a later refinance is assured.
Match your purchase scenario to a financing path
Use your intended occupancy, loan amount and income documentation to narrow the discussion. Each path still requires an acceptable borrower, unit and project.
Primary residence or second home
Consider warrantable condo mortgages when the project and borrower fit conventional requirements. Confirm the applicable review and available down payment for your transaction.
Luxury purchase with a large loan
Review jumbo mortgage options alongside project eligibility. Portfolio programs may provide another route, with their own building, liquidity and documentation criteria.
Self-employed or international buyer
Discuss bank statement financing or other Non-QM options if standard income documentation does not fit. Foreign-national scenarios need an early review of residency, fund transfers and documentation.
Timing gap between transactions
Assess whether bridge financing fits your collateral and repayment plan. Compare the full cost and maturity, and establish a credible exit without assuming future conventional approval.
Compare the developer's preferred lender with an independent offer
A preferred lender may already have project documents and may offer an incentive. Ask whether the benefit is a closing credit, rate buydown or price adjustment, what conditions apply and whether choosing another lender changes it.
Compare the same loan amount, term and lock period. Review points, lender fees, APR, any mortgage insurance and cash to close using the CFPB Loan Estimate explainer. A temporary payment reduction and a permanent reduction in borrowing cost are different benefits.
Check the contract, deposits and closing costs
Request the purchase agreement, deposit ledger and condominium documents for the legal project and phase containing your unit. Have a Florida real-estate attorney review the contract before the applicable cancellation period expires.
- Buyer name and assignment: Confirm the buyer named in the contract, any restrictions or fees for changing or assigning the contract, and whether your financing program accepts the planned ownership as an individual, trust or entity.
- Deposit commitments: Confirm installment dates, the escrow arrangement and permitted use of funds.
- Delivery and closing: Identify the outside completion provisions, closing notice requirements and extension rights.
- Financing protection: Ask what happens if your loan is declined, the building is unacceptable to the lender or the appraisal is low. Confirm any financing contingency and the consequences for your deposit.
- Project documents: Obtain the declaration, bylaws, questionnaire, current budget, requested reserve information and insurance records.
- Ownership costs: Account for HOA dues, property taxes, unit insurance, master-association charges and actual rental restrictions.
How Florida's preclosing deposit escrow rules work
Under Florida Statutes Section 718.202, the first 10% of the sale price generally receives escrow protection for covered unfinished condominium sales, subject to statutory alternatives. Payments above 10% received before construction is complete are also subject to escrow requirements. If the contract permits and construction has begun, the developer may withdraw those excess funds for allowed actual construction and development costs. The statute excludes uses such as marketing, sales expenses and loan costs. Separate accounting can satisfy the statute even when funds share an escrow account.
The law does not set a universal deposit schedule or promise a refund when financing fails. Have your attorney explain the contract's withdrawal language, cancellation rights and default provisions before you commit funds.
New-development closing-cost checklist
Ask the settlement agent for an itemized estimate based on your contract. Check which of the following apply and who must pay them:
- Developer charges: Any contractual closing fee, reimbursement or administrative charge.
- Association contributions: Working-capital or initial contributions and any separate master-association amounts.
- Title and settlement: Title insurance, closing services, recording charges and contract provisions governing the closing agent.
- Transfer and mortgage taxes: Any deed documentary stamps allocated to you, plus applicable mortgage taxes. The Florida Department of Revenue explains documentary stamp taxes; ask the settlement agent to calculate the amounts for your documents and county.
- Loan costs and prepaids: Lender charges, appraisal, insurance, prepaid interest and any initial escrow funding.
Developer and association charges depend on the contract and development. Florida mortgage-related taxes generally apply to financed purchases; ask the settlement agent to itemize applicable taxes and loan costs. Separate closing expenses from lender-required reserves that must remain available after closing.
Manage financing risks between contract and closing
Your qualification changes
New debt, a job change or a different intended use can affect approval. Update your mortgage broker before making a financial change or changing the planned ownership structure.
Delivery moves beyond your rate lock
Confirm expiration, extension costs and any float-down terms in writing. A mortgage rate lock lasts for a specified period; coordinate it with a realistic delivery schedule.
The appraisal is below the contract price
Request a revised loan calculation and cash budget. Compare the additional funds needed with your available liquidity before relying on the original preapproval amount.
Deposits leave too little cash available
Keep a running total of paid and upcoming deposits, estimated closing costs and required reserves. Document where funds came from and disclose any borrowing used to make deposits.
Example: deposits, appraisal and your remaining cash
Hypothetical illustration, not a client closing or loan offer. Assume a $1,000,000 condo, $300,000 in documented deposits already paid, and an approved loan of $650,000. The remaining purchase-price contribution would be $50,000: $1,000,000 minus $300,000 minus $650,000. Closing costs and required reserves are separate.
Original purchase plan
Purchase price: $1,000,000
Deposits paid: $300,000
Assumed loan: $650,000
Remaining price contribution: $50,000
If the appraisal changes the loan
Assume a $900,000 appraisal and a lender limiting the loan to 65% of that value. The loan becomes $585,000. The remaining price contribution becomes $115,000, before costs and reserves.
The appraisal scenario requires $65,000 more cash than the original plan. These assumed limits are for illustration, not a universal condo down-payment requirement. The actual program, valuation basis, deposit documentation and eligibility determine the permitted loan amount.
Ask for a cash-to-close estimate with deposits shown as credits, not counted a second time as new money due. Also distinguish funds spent at closing from reserves that must remain available afterward. A written fallback budget is more useful than assuming the future property value will rise.
Your cash-to-close worksheet
- Start with the purchase price
Record the final contract price, including any agreed adjustments.
- Subtract credited deposits and loan proceeds
Use documented deposits accepted as credits and the lender's current approved loan amount.
- Add remaining costs and adjustments
Add buyer-paid costs, prepaids and settlement adjustments; subtract other permitted credits. Use the settlement statement to avoid counting any item twice.
- Check liquidity after closing
Keep required reserves separate from funds spent at settlement. Repeat the calculation if the appraisal, loan amount or closing date changes.
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Start with the building and the closing plan
New construction condo financing works best when the borrower review, project review and delivery schedule are considered together. Confirm the applicable financing path early, then update the evidence as closing approaches.
Request a new-development financing review with Bennett Capital Partners. Have the project name and address, unit number, purchase price, deposits paid, expected closing date and intended use ready. We will also discuss your requested loan amount, residency and how you document income. Provide financial records through the secure application process when requested.
You can request a review for your specific development even if it is not named in this guide. The objective is a financing plan for your unit and circumstances, with outstanding building and borrower conditions identified before the closing deadline.
New construction condo financing FAQs
What do I need to know about getting a mortgage for a new condo in Florida?
You need both borrower qualification and an acceptable project review. Confirm the unit's completion status, program requirements, deposit documentation, appraisal and expected closing date. Preapproval does not guarantee that a future building or loan will qualify.
When should I arrange financing for a pre-construction condo?
Begin a financing feasibility review before signing or making major deposits, then refresh the application as delivery approaches. Income records, credit, pricing and project conditions can change during construction. Ask your broker when to update each item for your expected closing.
Can an investor finance a unit in a new condo development?
Potentially, if the program accepts your intended occupancy, borrower profile and project. An investor loan still requires building review. For Fannie Mae new-project Full Review, investor purchases do not count toward the separate presale threshold for principal-residence and second-home purchasers.
Does a large developer deposit mean I need no more cash at closing?
No. Deposits credited toward the purchase price reduce the remaining amount due, but your loan proceeds, closing costs, adjustments and required reserves determine the full cash plan. Ask for a settlement estimate that identifies deposits already paid and the additional funds still needed.
What should I ask my mortgage broker about new construction condo loans?
Ask which project review applies, what conditions remain, when borrower documents must be updated, and how delays affect the rate lock. Request a cost breakdown showing deposits already paid, additional cash due, reserves and any developer incentives.
Do I have to use the developer’s preferred lender?
Check your purchase contract and any incentive agreement with your attorney. Ask whether another lender can meet the project and closing requirements, and whether changing lenders affects a credit or other incentive. Compare written offers on the same loan amount, term and lock period.
Can I get a mortgage for a luxury branded residence?
Yes, financing may be available when the borrower, unit and project meet a program's requirements. The brand name does not establish mortgage eligibility. Review the loan amount, intended occupancy, project operations, completion status and financial documentation together. Bennett Capital Partners specializes in these new-development buyer scenarios across Florida.
Can foreign nationals finance a new construction condo in Florida?
Eligible international buyers may have foreign-national financing options. Begin with your residency, intended use, income documentation and source of deposit and closing funds. The lender must also accept the specific project. Confirm documentation and fund-transfer requirements early rather than waiting for the developer's closing notice.
Does every new Florida condo need PERS approval?
No. Fannie Mae retired Florida's mandatory PERS submission requirement for new and newly converted attached-unit projects in March 2026. Delegated Full Review is available, while other applicable review paths and conditions still need lender confirmation.
Can the purchase mortgage pay my pre-construction deposits?
The purchase mortgage normally funds at closing, rather than funding earlier developer deposits. Arrange acceptable deposit funds separately and document their source. If you intend to borrow those funds elsewhere, disclose the debt and have its effect on qualification reviewed before committing.
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Sources & Further Reading
Florida Department of Revenue
Fannie Mae
Florida Legislature
Consumer Financial Protection Bureau
Consumer Financial Protection Bureau
