When buying Miami condos, cash continues to rule - Condo Vultures LLC reports that from January through March almost 600 Miami condos in 29 different projects were bought with cash in the greater downtown Miami area. According to the Miami Beach real estate consultants, fewer than 120 units in 19 projects were financed.
A principal with Condo Vulture, Peter Zalewski said, "Even though the U.S. government is encouraging lenders to once again finance condo purchases, the results have not been impressive in South Florida. Many lenders claim to be willing to consider writing loans for buyers of condominiums, but the end results simply do not support that.”
The report also said buyers obtained almost three-dozen mortgages, the highest number of mortgages in the downtown condo market, in Icon Brickell. Almost half of the 1,800 units in the three tower Icon complex were given back to the lender, earlier this month.
According to the report, 500 Brickell condos which are across from the Icon had the next highest amount of mortgage loans the street from Icon Brickell. Third in line for the most financed mortgages were the Ivy Miami condos on the north side of the Miami River.
A special team was created to review applications for new Miami and Miami Beach real estate projects looking for approval by Fannie Mae who has been working to make certification guidelines easier.
In the first four months of the year, Fannie Mae approved 70 Florida condominiums, after approving 146 projects in the state in 2009. According to the report, that number is considerably better than 2008 when no Miami condos projects were granted Fannie Mae approval.
Contributed by MLR Realty
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