Banker works with new condo complex to get client a VA loan

Mortgage banker: Terry T. Terzakis

Property type: Condominium in West Haven

Purchase price: $407,500

Loan amount: $407,500 Appraised value: $415,000 Loan type: VA Mortgage Background: A veteran home buyer and his wife were referred to Terry Terzakis by their Realtor earlier this year for mortgage preapproval.

Being a veteran, he was excited that he would qualify for a Veteran Affairs mortgage. Two of the major benefits to the VA mortgage program are that no down payment is required and there is no monthly private mortgage insurance [PMI]. This makes monthly payments very affordable.

The buyers were only considering purchasing a condominium to minimize the amount of maintenance and upkeep.

One challenge Terzakis discussed with them was that they would have to limit their search to complexes that were on the VA approved list. Like Federal Housing Administration, the VA has a list of complexes that are acceptable for VA financing.

Along the Shoreline — their target buying area — there were few complexes on the list. But the buyers fell in love with a brandnew condo in Madison; a complex that was in the process of being developed.

It had everything they dreamed of and was located exactly where they wanted to live, but being a new complex, it was not on the approved list. They were absolutely determined that this must be their new home. Nothing else they previewed came anywhere near meeting all their needs, nor had the appeal of this new unit.

Financing on new construction condos is typically challenging, often requiring large down payments and sometimes higher interest rates. But Terzakis decided to dig a little deeper before saying this would not be an option for them.

He contacted the VA offices to find out what would be required to get this new complex on VA’s approved list. With the help of their Realtor, they gathered up many documents from the homeowners association and the builder, including the new complex’s by-laws, declarations and budget among others.

All the information was submitted to the VA and in less than two weeks this new complex was approved, allowing the buyers to move forward with purchasing their new home.

No money was required for down payment and their Realtor even negotiated for the seller to pay all their closing costs.

In this crazy world of real estate financing, with constantly changing rules and regulations, it is important to work with a mortgage banker who is willing to go the extra mile.