Guaranteed Mortgage Program

Guaranteed Mortgage Program Boundary Map

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The University of Pennsylvania’s commitment to home ownership and neighborhood revitalization dates back to 1965 when the Guaranteed Mortgage Program was first initiated. The University is proud to continue this rich history, which is deeply rooted in an understanding that the health and vitality of the University is inextricably linked to that of the surrounding community. The Guaranteed Mortgage Program provides low-cost, financing options to full-time faculty and staff of the University and Health System who wish to reside in West Philadelphia. Through partnerships with participating lenders - currently Advance Bank and GMAC Mortgage - the University guarantees a given percentage of each loan, thereby enabling faculty and staff to have minimum or no down payment and/or out-of-pocket expenses related to their home purchase. The program boundaries in West Philadelphia are City Line Avenue, Cobbs Creek Parkway, Woodland Avenue and the Schuylkill River. (See map)

Eligibility

• Borrowers must be full-time 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. Employment status will be verified with central Human Resources departments.
• The maximum loan amount cannot exceed Fannie Mae Conforming Loan Limits (currently $417,000 for single family and $533,000 for two unit properties).
• 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.
• Borrowers must be approved by a preferred lender for a 15 or 30 year fixed rate, rate/term refinance or purchase mortgage.
• Borrowers must meet Penn Home Ownership Service’s (PHOS) credit guidelines (consideration is given to credit scores, outstanding collections/judgments, debt ratios, etc.).
• Final lending decision is at the discretion of the preferred lender with approval from PHOS.

Preferred Lenders

• Advance Bank - Calvin R. Tucker (215) 472-4545 x3006
• GMAC - Anthony Casey (215) 386-5311

Advantage

• Borrow up to 105% of the purchase price (or appraised value for refinances) of a home, or up to 120% in the case of rehabilitation purchases (5% towards closing costs and 15% towards rehabilitation) and Penn will guarantee the 1st mortgage, thereby eliminating the cost of Private Mortgage Insurance (PMI).

Release

• Mortgage must be refinanced and/or satisfied within 60 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.