Condo Association Management Blog

Yes. It is risky but there is a way for the builder to sell these. First let me say that I am not a finance or mortgage broker and you will need to consult a professional to verify all the qualifying rules and regulation pertinent to you. Here are some ideas that can get the creative questions flowing with your (builder's) banker.  
 
If able, the builder should do owner financing with terms comparable to the conventional loans the buyers can obtain. If the buyers have a substantial down payment, the builder can sell the note on the secondary market. There are lots of note buyers out there now. If the buyers have little to no down payment, the builder can still offer the buyer comparable terms with a requirement that the buyer will refinance (balloon payment will take care of this) in 1 or 2 years after all the units are sold and the condo will fall into more conventional guidelines. Make sure the FHA, VA, Freddie and Fannie guidelines will allow loans condo on those condos if all are owned by different people and where any vote might end up with a 50/50 deadlock. If the builder does not have the funds to do short term owner financing, there are many investors that would like to do the financing for him for a ‘piece of the pie’. I know of people that have private money for this type of investment. 
 

I believe you should download a copy of the Florioda Condominium Act. You will find that the developer must produce the bylaws and budget and provide same to prospective purc hasers. I do not believe your solution to be legal.Of course if the units are to be sold individually and not be set up as a condominium your solution is ok.