Banker helps sin­gle mom buy a West Haven con­do­minium

New Haven Register (Sunday) (New Haven, CT) - - REAL ESTATE - Terry T. Terza­kis Terry T. Terza­kis, Mort­gage Banker, At­lantic Home Loans, 2751 Dixwell Ave., Ham­den, CT 06518, (203) 691-9788, tterza­kis@at­lanti­chome­loans.com

Mort­gage banker: Terry T. Terza­kis

Prop­erty type: Con­do­minium in West Haven

Pur­chase price: $224,100

Loan amount: $216,256 Ap­praised value: $225,000 Loan type: FHA Mort­gage Back­ground: A home buyer re­cently con­tacted Terza­kis to be pre-ap­proved for a mort­gage. Her fi­nan­cial pro­file lim­ited her to ap­ply­ing for an Fed­eral Hous­ing Ad­min­is­tra­tion mort­gage due to some deroga­tory marks on her credit re­port.

The FHA pro­gram is a bit more for­giv­ing against past credit blem­ishes ver­sus most con­ven­tional loan pro­grams. As a sin­gle mother, she was in­ter­ested in pur­chas­ing a con­do­minium for her and her daugh­ter so as to avoid the worry and ex­pense of main­tain­ing a house and a yard.

Her chal­lenge be­came try­ing to find a con­do­minium com­plex that was FHA ap­proved. FHA must ap­prove the en­tire con­do­minium com­plex in or­der to ob­tain a new FHA mort­gage.

In her tar­get city of West Haven, un­for­tu­nately, there are very few condo com­plexes that are cur­rently FHA ap­proved.

As the buyer viewed sev­eral con­dos for sale she be­gan to get dis­cour­aged as noth­ing was meet­ing her needs and her wants in a new home un­til she came across one she felt was just per­fect. But once she looked up the com­plex on the FHA web­site, she saw it was not an ap­proved com­plex so she as­sumed she would not be able to pur­chase this unit.

When dis­cussing this prop­erty with Terza­kis, he looked up the list­ing to dis­cover it was a HUDowned condo. A HUD-owned prop­erty is one in which the pre­vi­ous owner de­faulted on an FHA mort­gage and HUD takes own­er­ship through fore­clo­sure.

In this in­stance where HUD owns the condo, they do not re­quire the con­do­minium com­plex to have cur­rent FHA ap­proval in or­der for a new buyer to ob­tain a new FHA mort­gage.

Terza­kis ex­plained to his buyer that not only would she be able to get an FHA mort­gage for this par­tic­u­lar unit, but also that HUD has a fi­nanc­ing in­cen­tive al­low­ing the buyer to waive the typ­i­cal 3.5 per­cent down pay­ment and in­stead she would only need $100 for her down pay­ment.

Ad­di­tion­ally, she could ask HUD to pay up to 3 per­cent of the pur­chase price to­ward her clos­ing costs. She sub­mit­ted an of­fer for $224,100 with 3 per­cent back for clos­ing costs and her bid was ac­cepted.

Within about a month’s time, this new home­owner and her daugh­ter closed on their new home and have set­tled in only need­ing about $1,000 out of pocket to com­plete the en­tire trans­ac­tion.

She was able to use the money she had ini­tially set aside for her down pay­ment to spruce up the condo and truly make it a home where she can raise her daugh­ter.

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