Banker helps investor buy three-family New Haven home

Mortgage banker: Terry T. Terzakis

Purchase price: $197,000

Loan amount: $147,750 Appraised value: $200,000 Background: One of Terzakis’s past clients is a real estate investor who owns many multifamily homes. These properties are his primary source of income.

Over the years, Terzakis has assisted him with financing many of these properties.

As is common with a property owner’s tax returns, after deducting expenses and depreciation, the bottom line often shows little income or sometimes even a loss. Though this is beneficial for tax obligations, it can hinder them from qualifying for a new mortgage.

In the past, Terzakis had to utilize a “no-income verification” mortgage program to qualify investors such as this client, but after the financial crisis of a decade ago, no-income verification mortgages were widely eliminated leaving these investors, and even many self-employed borrowers, with few or no options for home financing.

Terzakis now has access to a special mortgage program designed to help such property investors. He contacted his past investor clients to let them know of this new financing option.

Similar to some commercial mortgages, this program qualifies based on the cash flow of the property, or debt-service ratio.

Basically, the underwriter is looking to see that the sum of the rents will carry the mortgage payment. No personal income is factored into the qualifications. In fact, the borrower does not even need formal employment.

With a 20 percent or 25 percent down payment, this residential loan program is often more attractive than commercial mortgages or private hard-money loans, which often have very high rates and fees.

His client let him know the timing was perfect hearing this news as he had just looked at three-family house in New Haven that he knew would be a good investment. He was preparing to make an offer utilizing a hard-money loan as he had often done in the past, but instead switched gears and submitted an application to finance through Atlantic Home Loans’ new program.

Terzakis’s client closed on this new property last month and was grateful to do so much more affordably than expected.

Since there is no limit on the number of properties one borrower may own when using this program, he is ready to start looking for the next home to add to his real estate portfolio.

Terry T. Terzakis, Atlantic Home Loans,

203-691-9788, tterzakis@atlantichomeloans.com