Condo developers get into lending game

TRD New York /
Feb.February 19, 2010 05:33 PM

From the South Florida Web site: With mortgages hard to come by, some developers are lending the money to buyers themselves in order to sell units.
“It just reflects the fact that it’s not easy to get financing for a condo unit,” said Guy Cecala, CEO and publisher of the Maryland-based Inside Mortgage Finance Publications, a group of industry newsletters. “They’re the black sheep of the mortgage market.”
That’s especially true in South Florida where it’s ground zero for the condo market crash, he said. Since the peak of the boom years in 2006, condo prices have dropped around 50 percent, according to real estate tracking company Zillow.com.
So condo projects like the Luxuria in Boca Raton, 1200 Hillsboro Mile, which is just south of Boca Raton in Hillsboro Beach, and the 1800 Club in Miami, a 42-story luxury condo in the Miami Performing Arts District, are finding alternatives to the traditional mortgage market.


Related Articles

arrow_forward_ios
Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over

Zillow CEO Spencer Rascoff is stepping down as his co-founder takes over
Placeholder image

Zillow to pay $50M for StreetEasy

Zillow to pay $50M for StreetEasy
Tomo's Greg Schwartz and Carey Armstrong (Photos via Tomo Network)

Ex-Zillow execs launch digital mortgage startup with $40M seed round

Ex-Zillow execs launch digital mortgage startup with $40M seed round
(Getty, iStock)

Refinancings drove up home mortgage apps last week

Refinancings drove up home mortgage apps last week
Spencer Rascoff and Zillow CEO Rich Barton (Getty; iStock)

Spencer Rascoff says Zillow IPO was “facepalm” moment

Spencer Rascoff says Zillow IPO was “facepalm” moment
The coronavirus pandemic pushed back the home shopping season into the fall, according to a Zillow report. (iStock)

Homes sold faster in September than in any month this year

Homes sold faster in September than in any month this year
The number of mortgage borrowers in Covid-19 forbearance plans ticked down again this week. (iStock)

3M homeowners remain in forbearance

3M homeowners remain in forbearance
(iStock)

Older Americans increasingly saddled with housing debt

Older Americans increasingly saddled with housing debt
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...