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: 2010-02-24 14:30:29
Steven
Twelve Atlantic Station is once again approved for FHA financing. The previous lack of financing was due to an incorrect classification by Fannie Mae, which has now been corrected.