anabel pollan
dariel hernandez
As property prices continue to rise in South Florida, more first-time home buyers will be looking to purchase condos with a low down payment. In this week's 2-minute Tuesday, we will cover the three major challenges we are experiencing in the South Florida condo market and the currently available solutions.
A lack of projects collecting at least 10% of reserves or their assessment income in the annual budget remains the most popular reason condos are not eligible for a low down payment. However, I have heard of some legislation in place at the beginning of 2025 that will require all condo projects in Florida to collect at least 10% in reserves.
Since the collapse of the Surfside building in 2021, legislation has been passed to ensure that HOAs meet the requirements to maintain a project's structural integrity. This legislation has obligated many projects to do major repairs to pass milestone inspections required by law.
This is now a new obstacle we have seen rise quickly in popularity, and it is probably tied to the obstacle mentioned above. South Florida faces a huge issue with condo project insurance, and a deductible of 5% is becoming unaffordable for many projects.
We have extensive experience working with condos, and we're happy to assist you and your buyer in navigating the biggest obstacles in condo financing that our market presents.
Make sure to see our market update video below or don't the right of this presentation, depending on the device you're using to view it.
Thanks,
Michael Ortiz
The Mortgage HUB
anabel pollan
dariel hernandez