Enhanced Mortgage Program

Enhanced Mortgage Program Boundary Map

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The University of Pennsylvania established the Enhanced Mortgage Program, a $7,500 forgivable loan, as an incentive for faculty and staff interested in living and/or currently residing in the West Philadelphia community. The University recognizes the great diversity and the unique and attractive historic fabric of the West Philadelphia community. These loans can be used for closing costs, down payment, to buy down points, and/or for interior or exterior home improvements. In addition, the loan can be used to convert a property from a multi-family to a single-family residence. Existing home owners may apply for the $7,500 loan for improvements to houses valued at the current median price of homes in West Philadelphia. The boundaries of the program are Haverford Avenue, 52nd Street, Woodland Avenue and the Schuylkill River. (See map)

Eligibility

• Borrowers must be fulltime employees of the University of Pennsylvania or the University of Pennsylvania Health System (including Clinical Practices, Clinical Care Associates, Presbyterian, HUP and Pennsylvania Hospitals) who have successfully completed the probation period, and are either United States citizens or permanent resident aliens. Employees working on a contractual basis must have a minimum three year contract.
• One or two-unit primary residences must be located within geographical boundaries (see map). Property address will be verified and confirmed by Penn Home Ownership Services staff to ensure it is within the boundary.
• Condominiums must be Fannie Mae approved.
• The enhanced mortgage can subordinate to a 15 or 30 year fixed rate, rate/term refinance or purchase first mortgage, the Enhanced Mortgage can also be a third mortgage.
• Borrowers must meet Penn Home Ownership Service’s (PHOS) credit guidelines. Consideration is given to credit scores, outstanding collections/judgments, debt ratios, etc.
• A final lending decision is at the discretion of PHOS.

Advantage

• Eligible participants can borrow up to $7500 (with no interest and no monthly payments) for use towards home improvements
• Additionally, if the enhanced mortgage is in conjunction with a PHOS guaranteed mortgage through a preferred lender, then the funds may also be used towards closing costs, down payment and/or purchase points.

Release

• Unforgiven mortgage amount must be repaid within 30 days if, at any time, the borrower ceases to be a full-time employee of the University (excepting retirement), ceases to occupy the property as a primary residence and/or ceases to be the owner of the property.
• The loan is forgiven over a five year period according to the following schedule:
  • After 1 Year: $6000 Owed
  • After 2 Years: $4500 Owed
  • After 3 Years: $3000 Owed
  • After 4 Years: $1500 Owed
  • After 5 Years: $0 Owed