Why can't I Get a Mortgage at some Atlantic Station Condos?
Atlantic Station Condos For Sale, Questions and Answers
There are two condo projects in Atlantic Station that cannot be approved for financing at the moment: Twelve Atlantic Station and the ATLofts.
This is a common problem in many condo projects right now across the country. It is a problem for buyers who need to obtain a mortgage, but it is an especially attractive opportunity for cash buyers who can take advantage of the situation to get unusually good prices.
Twelve Atlantic Station: The problem with financing at this building stems from the fact that there is a hotel on the first six floors of the building.
Fannie Mae (who sets mortgage guidelines) reclassified the building some months ago as a "condotel". A condotel is a condo building, common in Florida, that rents out the condos by the night when the owners are away. This has proved to be a bad idea, and mortgages on this type of property are not available. Until Twelve gets Fannie Mae to classify it correctly, cash or a personal loan will be the only way to buy.
The Atlofts are a different story, but the same outcome. Fannie Mae requires that a condo project be at least 50% presold to qualify for a mortgage. Since ATLofts hit the market as things started to tank, they were not 50% pre-sold.
This has also had the effect of making this a cash-only building, and providing some great deals to cash buyers and investors!
If you need to get a mortgage and want to buy a townhome or condo in Atlantic Station, don't worry! Element, 16th Street Townhomes, and Art Foundry are all mortgage-qualified properties!
Date: Wednesday, February, 24th 2010 @ 02:30:29 PMViews: 279
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