Congress Unanimously Agrees To Make FHA Financing Easier For Condo Buyers

In a rare moment of solidarity, Congress unanimously agreed to pass the proposed changes to the FHA approval guidelines for condo purchases, opening the way for middle-income buyers to participate in the condo market once more.

Over recent years, the FHA has imposed nearly impossible guidelines for condo purchases that have left a large segment of buyers out of the market, particularly first time homebuyers. The problem has been that in order to secure an FHA loan for a property, the buyers must qualify (relatively easy), AND the building must qualify (almost impossible). The approval process was expensive and the costs were not refunded in the event that the project was rejected. The approvals had to be renewed every couple of years as well. Most condo associations opted to forego the application and just not have FHA as an option for purchasers in the building. With the new guidelines, the projects no longer need to go through the approval process. Buyers can now apply for a spot-approval on individual units and the owner-occupant vs investor ratios have been lowered. Bravo!

This is going to be a big help for actual residents of the Downtown Miami area who are ready to buy a condo, but maybe don’t have the 20%-35% down payment that is currently required to buy a property. You can read more about the new guidelines here.

Harem-Inspired MarinaBlue Party Pad Gives Us a Lesson in Over Improvements

Buckle up, my friends. We’re about to go on a tawdry real estate magic carpet ride! If you’ve ever been curious about the idea of over improvements in real estate, here is a prime example. The listing agent of this 1,208 square foot 2 bedroom condo at Marina Blue describes it as ‘exotic’… and indeed it is!

The idea of over improvement is when someone spends a ton of money on renovations, hoping to increase the value of a property. The only problem is that in the process of overdoing it they alienate most of their target market and end up having to settle for a lesser amount when a deal is finally made. An example would be paying to remove a marble floor and replacing it with another marble floor that is far more expensive but not that much different. You won’t get your money back on that upgrade. Another example would be knocking down all the walls in the apartment, removing the kitchen to make way for an enormous wet bar, building a jacuzzi in your living room and then adorning it all with silk and mother of pearl… which is what happened here.

To be fair, I don’t have a problem with Moroccan design. It can be pretty when done right. However, when you are selling or leasing a property, you want that property to fit the tastes of as many people as possible so that you can find a deal more quickly and be able to negotiate more money from the deal. Alienating all of those people who may not like Moroccan design is not the way to do it. Finding that one person who wants a step-up jacuzzi in their living room might take a bit longer. I’m all for cocktail hour, but still need a kitchen and I think most of Miami agrees.

I just want to tell this apartment to settle down, and I certainly don’t want to think about what has gone on inside. It has been on the market now for almost 4 months, in a building where it typically takes less than 2 months to find a tenant and get them qualified/approved/moved-in. Originally the landlord was asking $4,500/month, but it has recently been reduced to $3,800/month. What do you think it will end up trading for? Which feature sticks out most to you? Every time I look at the photos, I find something else to gawk at.

The staircase to the living room bathtub

Close-up of the living room bathtub

Kitchen turned full bar

Master bath with ALL of the tile and scenescape wallpaper

Another bathroom with more mother of pearl

Proof that this apartment is in MarinaBlue

FHA Proposes New Approval Process That Helps People Get Condo Loans

Condo shoppers rejoice! The FHA (Federal Housing Administration) is proposing changes to their condo approval process that could really benefit South Florida shoppers.

Up until now, if a person wanted to buy a condo in the Downtown Miami, Brickell, Midtown, or Miami Beach areas with an FHA loan, their choices would be to buy at Brickell on the River’s south tower, Brickell on the River’s south tower, or Brickell on the River’s south tower. That is not a typo, the only approved condo project in our area is Brickell on the River. The entire project isn’t even approved, just the south tower. 1800 Club was approved in 2012, but that expired in 2014 and wasn’t renewed. In my experience, whenever I have a buyer who is looking to use an FHA loan, I always tell them that they need to purchase a house, not a condo. Condo FHA loans are almost impossible.

The problem is that in order to offer FHA loans on the properties in the various condos, the entire building has to undergo an application process with FHA. This isn’t cost effective for developers because they have typically already sold their units prior to the building’s opening. Established condos would have to undergo the expense of the application, which is another expense for the condo association to pay. Those buildings that do go for the application typically get rejected because of the number of owner-occupants in the building. Let’s face it, a lot of the residents in our towers are vacation homes, rental units, or a combination of the two.

Well today is a new day. The FHA has realized that it is extremely difficult to use their loans in condos and are proposing to change their ways. They are proposing to lower the minimum owner-occupancy requirements to 25%-75% and allow single-unit spot approvals.

What this means is that instead of having to qualify the entire building, you could get an FHA loan on a single condo as long as their building information matches the requirements of FHA (which would now be far more lenient). Since FHA loans are designed for people who are responsible homebuyers but may not have a huge down payment or fully-established credit, these buyers have been left out of the Downtown Miami market, which is in need of new buyers now. Let’s hope and pray that this goes through! It would be amazing to see more homeowners in the downtown area!

If you would like to read the entire proposed rule, you can find it here.

Drone Footage of the One Thousand Museum Construction Site

Below is a drone video of the One Thousand Museum construction site as of this past Monday, September 5th, the date that the footage was shot. It showcases the breathtaking views that condos at One Thousand Museum will offer as well as provides a bird’s-eye view of the progress that has been made thus far to the tower.

One Thousand Museum Construction Tour

Enjoying the view from One Thousand Museum with developer Gregg Covin

Yesterday morning, I was given the opportunity to tour the One Thousand Museum construction site with co-developer Gregg Covin. It was quite a treat to finally step foot inside a development that I have followed so closely over the past three and a half years. As a resident of Park West, I walk and drive by the One Thousand Museum construction site on a daily basis; to admire its impressive form from the street is one thing, but to tour it and see the building’s lines and curves from the inside looking out is quite another.

As of yesterday morning, construction at One Thousand Museum had reached the 19th floor. While on my guided tour, I was permitted to go as high as the 15th floor. Even from just the 15th floor, however, the views were breathtaking. Along with three townhouse units, each with impressive 20-foot ceilings in the living and family rooms, I also had a chance to tour two half floor residences, one located on the south side of the building and the other on the north side. When viewing the half floor residence located on the north side of the building, I was pleasantly surprised by the amount of separation the residence had from its neighbors to the north at Ten Museum Park. From street-level, One Thousand Museum and Ten Museum Park are just about connected, but the residences themselves have good separation due to the pools that wrap around at the top of each building’s pedestal.

If all goes according to plan, One Thousand Museum will be topped off this time next year. While touring the building yesterday, Covin shared with me that hopes to top-off the building by August 2017 and then obtain a TCO about 13 months thereafter. Until then, One Thousand Museum is a masterpiece in the making.

southeast corner townhouse unit

overlooking the living room with 20-foot ceilings

second level of southeast corner townhouse

touring a half floor residence

overlooking Museum Park

view east from 1000 Museum

terrace

southeast view from One Thousand Museum

getting the lay of the land from developer Gregg Covin

northeast corner

half floor residence on the north side

a picture-perfect day!

the pools create nice separation between residences on the north side

overlooking the pool on the west side of 1000 Museum

southwest corner townhouse – 10th floor

southeast corner townhouse – 10th floor

southwest corner terrace

northeast corner terrace at 1000 Museum

From the Air Jade at Brickell Bay Looks Better Than Ever

Jade at Brickell Bay is back and looking better than ever! For almost four years, a dark cloud hung over the luxury tower as an exterior work project to correct construction issues concerned and kept away would-be buyers. Scaffolding and rope hung down the sides of the building and, at one point, residents were unable to use their balconies on weekdays and the pool deck during certain hours. A few months ago, almost four years later, the exterior work project was completed and Jade at Brickell Bay is once again regarded as a top luxury option for buyers and renters. Take a look at our drone video below to see Jade at Brickell Bay in all her glory.

Terra’s David Martin Debuts his New Real Estate Column in Forbes

David Martin

A warrior and a poet? Meh. Maybe not, but David Martin, head of Terra Group and developer of Grove at Grand Bay, Park Grove, and GLASS, is now a developer and an author. He’s writing a twice-monthly column over at Forbes on ‘real estate development, design, and sustainability,’ beginning with a discussion on why more buyers in South Florida are end users these days as opposed to speculators. To summarize his point in just a few words: Miami’s a bit more grown up, and that makes a big difference.

Centro Moves Closings & Gets Fannie Mae; Check Out Our Drone-Cam!

Centro. Photo by Lucas Lechuga.

Just like everything from Miami’s biggest construction projects to your Memorial Day flight, closings at Centro have been slightly delayed. A month ago we heard word that the project was wrapping up construction and aiming to acquire their TCO by the end of May/beginning of June, allowing residents to close on their units and move-on-in. Now, according to representatives of the project, they’re talking more like the end of June. Okay, so not a big shocker. Stuff happens. Centro, in the heart of Downtown Miami, is still rapidly progressing toward completion.

If you’re the kind of bloke who likes his condos finished before he buys one, Centro does have some units left, with 645-foot one bedrooms starting at $303K, up to 1131 square foot 2 bedroom/bath units topping out at $578,900. Finally, if you’re the kind of bloke who needs financing and you really want to live at Centro, well you’re in luck too. Centro was granted conditional approval from Fannie Mae (warning: PDF) at the end of last month, lasting through January of next year.

And if you’re wondering the type of views that Centro will offer, look no further. Check out the cool drone video below which showcases the building and fabulous views that it offers.

New Video Released for Paramount Miami Worldcenter Showcasing the High Street Retail

A new video was released today for Paramount Miami Worldcenter and includes footage of what the high street retail will look like once finished. Well, the video isn’t exactly new. It’s an edited video with all references of the mall removed and, in its place, new footage showcasing the high street retail. Spoiler alert: It looks amazing!