Reimbursements, Satisfactions & Subordinations

Enhanced Mortgage Program Only

Reimbursements

All or part of the $7500 included in the Enhanced Mortgage Program can be used towards home improvements within one year of settlement. In order to use these funds for home improvements, the borrower must provide paid receipts for the work that has been completed. PHOS will reimburse for work completed by a contractor as long as the contractor is licensed and insured (copies of license and insurance will be required). The borrower will be reimbursed the cost of improvements in the form of a check that will be mailed to the home address. Funds may take up to six weeks to arrive after all required documentation has been submitted. Acceptable improvements include:

• Carpeting
• Flooring
• Painting
• Fixtures
• Large Appliances
• Built-ins
• Lead Reduction
• Plumbing
• Electrical
• Heating/Cooling
• Landscaping
• Roofing
• Fencing
• Masonry
• Pointing
• Asbestos/Radon Removal

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: Associate Director, and enclose the following:

• your application (1003)
• 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).