Loans for new construction condos
New condo projects often fall short of lender rules while units are still selling. We compare lenders that finance new developments, so the building does not stand between you and closing.
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Overview
Buying a unit in a newly built or still-selling condo project brings its own financing challenges. Many lenders limit new projects based on presale levels, phases that are not complete, a developer that still controls the association, or a brand-new budget with no reserve history. When a project falls short, the lender may decline it even if your credit and income are strong.
Some lenders review new projects under Fannie Mae or Freddie Mac guidelines, and FHA or VA financing requires the project to be approved by that agency. Other lenders, including portfolio and non-QM lenders, finance new projects that fall outside agency rules. New construction condo loans can finance a primary residence, a second home or an investment property. Preconstruction buyers should plan financing early, because the closing date depends on when the building is completed.
Developers often recommend a preferred lender, sometimes with incentives, and you can compare that offer with other lenders before you decide. QMS reviews the project documents, checks which lenders will accept the building at its current stage, and compares their terms against any developer incentive. We also stay in touch with the developer's team on the closing timeline. All loans are subject to credit approval and lender guidelines.
Is it a good fit?
- Are buying a unit in a new condo building or one still selling units
- Signed a preconstruction contract and need financing at completion
- Were told the project does not yet meet a lender's requirements
- Want to compare the developer's preferred lender with other options
- Are buying a primary home, second home or investment unit
- Are self-employed or live abroad, with select lenders
What you'll need
- Purchase contract and any addenda
- Developer's condo documents, budget and project questionnaire
- Income documentation, or alternative documentation where allowed
- Bank statements showing deposits paid, down payment and reserves
- Government-issued photo ID
- Details of any developer incentive
How it works
How it works with QMS
Review the project
We review presales, phases and the association budget to see which lenders will accept the building.
Compare offers
We compare lender terms, including any developer incentive, before you commit.
Track completion and close
We coordinate with the developer on the completion timeline and close when the unit is ready.
FAQ
New Construction Condo loan FAQs
Don't see yours? Call us or send a message. We answer the same business day.
305-425-1990Why might a lender decline a new condo project?
Lenders review the building as well as the borrower. Common issues in new projects include low presale levels, unfinished phases or amenities, a developer that still controls the association, a new budget without reserve history, or a high share of units owned by investors. Each lender weighs these issues differently, which is why comparing lenders matters for new buildings.
Do I have to use the developer's preferred lender?
Developers often encourage buyers to use a preferred lender and may offer incentives for doing so. Read your contract to see how any incentive works and what it requires. You can compare that offer with other lenders, and we will help you weigh the incentive against the overall cost of each loan so you can choose the better deal.
When should I start financing a preconstruction purchase?
Talk with us early, ideally well before the building is completed. Your financial picture can change during construction, and the project's eligibility can change as sales progress, so it helps to know your options in advance. Once the developer sets a closing timeline, we update your file and move forward with a lender that will accept the project.
Can I use an FHA or VA loan for a new construction condo?
Only if the project has the required FHA or VA approval, which many new buildings do not have, especially early in sales. Conventional, jumbo and non-QM options are more common for new condos in South Florida. We check the project's approval status and compare the programs that fit your purchase.
Get started
Know your numbers before you make an offer.
Tell us about your scenario and we'll price it across our lenders the same business day.