Reimbursements, Satisfactions & Subordinations

Enhanced Forgavable Loan Only
(formerly Enhanced Mortgage Program)

Reimbursements

Please note the following instructions for taking home improvement draws on your Enhanced Forgivable Loan (EFL) (formerly Enhanced Mortgage Program (EMP). If you will be doing the work yourself (i.e. PHOS will not be reimbursing for any labor charges), then the following documentation will be required:

• Original receipt(s)
• Itemized list including a description, quantity and cost for all items which are being reimbursed
• Completed Exhibit A for each draw request
• Before and after pictures for all work which is visible

If the work is to be completed by a contractor (i.e. PHOS will be reimbursing for labor charges), then the following documentation will be required:

• Invoice (PHOS must pay the contractor directly. If the contractor requires payment up-front then PHOS will reimburse up to 1/3 of the cost with a copy of an estimate, 1/3 with a progress report with the work at least 50 percent completed, and 1/3 with a final invoice.)
• Contractor’s current license and insurance
• W-9 form completed by the contractor
• Completed Exhibit A for each draw request
• Before and after pictures for all work which is visible

Satisfactions

If selling or refinancing your home with the intention of paying off the remaining balance on your enhanced mortgage, a payoff letter will be required. Simply send a letter of request to Penn Home Ownership Services attn: Payoff Department with your contact information and indicating where and to whose attention the payoff letter should be sent.

An email from Penn Home Ownership Services will confirm receipt of the request and a letter confirming the exact payoff amount will be provided within ten business days. At the end of the five year forgiveness schedule, the enhanced mortgage will be satisfied without the need for a satisfaction request.

Upon satisfaction, the satisfaction piece must be recorded with the City of Philadelphia Office of Deeds. All recording fees will be the responsibility of the borrower.

Subordinations

If refinancing your home with the intention of keeping your enhanced second mortgage, a Subordination Agreement will be required. Subordinations are only considered for fixed rate and term refinances.  Cash out refinances will NOT be considered. As stated in the legal documents, Penn Home Ownership Services will ONLY subordinate to the second or third mortgage position.

To receive consideration for a subordination agreement, please request that your proposed new first mortgage company send a letter to Penn Home Ownership Services, attn: Director and enclose the following:

• your application and analysis (1003 & 1008)
• your credit report
• your blank Subordination Agreement
• your overnight delivery information (otherwise it will be sent via regular mail)
• your appraisal

The completed subordination agreement will be provided within 10 business days (15 days if the agreement must be attested).