Home Purchase Assistance Program
The Home Purchase Assistance Program was established to encourage and support home ownership within defined borders of the Drexel University main campus community (Drexel). The program offers a forgivable loan to benefit eligible full- and part-time Drexel University, including Drexel University College of Medicine faculty and professional staff toward the purchase or renovation of homes within defined borders.
Prior to initiating any contracts or commitments, the faculty or professional staff member must schedule an appointment with Althea Wallace, Director of Programs & Events (
alw322@drexel.edu
/215-895-2582) to discuss and confirm eligibility.
Home Purchase Assistance Program booklet [PDF]
I. Home Purchase Loan
Drexel/DUCOM will provide a forgivable loan to eligible staff members toward the purchase of a home with the following parameters:
- The property must not exceed a two-family dwelling, and includes condominiums. Multi-family dwellings may only be purchased with the intent and promise to convert into one or two family dwellings within six months of purchase.
- The property must be located within the geographical boundaries outlined on the map: 31st to 42nd Streets and Chestnut Street to Mantua Avenue.
- The property must be owner occupied and remain the staff member's principal residence for at least five years. Should the property cease to be the principal residence and owner occupied during the five-year period, the staff member agrees to repay a pro-rated portion of the loan amount back to Drexel based on the schedule listed below. However, if the property is sold to Drexel/DUCOM, in accordance with the Pre-Purchase and Post-Purchase certifications required conditions, the pro-rated repayment will be waived.
- In the event the staff member decides to sell the property purchased through the Home Purchase Assistance, to anyone other than an immediate family member, Drexel/DUCOM must be given the right of first refusal regardless of whether or not the five year occupancy has been met.
- The $15,000 forgivable loan must be used for closing costs, down payment assistance, closing “points” or mortgage insurance premiums associated with the purchase.
- Staff members may obtain mortgages at a lender of their choice or a Drexel/DUCOM preferred-lender.
- Forgivable home purchase loans are limited to one loan per property during any five-year period and may not be combined with any other Drexel/DUCOM home ownership benefit.
- Nothing in this guideline changes the at-will relationship between the parties.
II. Home Purchase Loan Application
To request a forgivable home purchase loan, the staff member must:
- Schedule an appointment with the Althea Wallace, Director of Programs & Events (alw322@drexel.edu/215-895-2582) to discuss and confirm eligibility.
- Submit the following documents (ten days prior to closing):
- completed application
- mortgage approval
- signed purchase agreement
- mortgage commitment letter
- confirmation of closing date
- Provide a “Pre-Purchase Certification”: Certify, prior to settlement, that the staff member will own and occupy the property for at least five years after the date of purchase.
- Provide four “Post-Purchase Certifications”: Certify, after settlement, on December 31st of the purchase year and on December 31st of each succeeding year for the next five years, that the staff member continues to own and occupy the property from the date of purchase through the date of each Post-Purchase Certification or through the fifth anniversary of the date of purchase.
- Forgivable home purchase loans will be made payable to the title company and will be available on the day of the closing, provided the eligible staff member still meets all eligibility requirements on the closing date.
- Should the staff member cease to occupy the home during the five-year period, or is terminated, the staff member agrees to repay a pro-rated portion of the loan amount to Drexel based on the following schedule:
After 1st anniversary and before 2nd anniversary of closing date: $12,000
After 2nd anniversary and before 3rd anniversary of closing date: $9,000
After 3rd anniversary and before 4th anniversary of closing date: $6,000
After 4th anniversary and before 5th anniversary of closing date: $3,000
III. Home Purchase Loan Eligibility
In order to be eligible under these guidelines, the staff member must be a full- or part-time benefit eligible active staff member of Drexel/DUCOM, on the date of the closing for the sale of the property. Staff members on non-paid leave, regardless of the reason for the leave, are not eligible until they return to active paid employment.
IV. Home Renovation Loan
Drexel/DUCOM will provide a forgivable loan to eligible staff members toward the approved renovation of a home with the following parameters:
- The property must not exceed a two-family dwelling, and includes condominiums. Multi-family dwellings may only be renovated with the intent and promise to convert into one or two family dwellings.
- The property must be located within the geographical boundaries outlined on the map: 31st to 42nd Streets and Chestnut Street to Mantua Avenue.
- The $5,000 forgivable loan must be used for approved façade renovations to the external structure only.
- Forgivable home renovation loans are limited to one loan per property during any three-year period and may not be combined with any other Drexel/DUCOM home ownership benefit.
- The property must be owner occupied and remain the employee's principal residence for at least two years. Should the property at any time during the two-year period cease to be owner occupied and the employee's principal residence, the employee agrees to pay the full $5,000 back to the University, unless the property is sold to Drexel University, in accordance with the Pre-Purchase and Post-Purchase certifications required as a condition of being eligible for the forgivable loan.
- Nothing in this guideline changes the at-will relationship between the parties.
V. Approved Home Renovations
- Approved renovations include any renovation that improves the external structure of the building façade.
- It is the responsibility of the owner to ensure that any renovation or changes to the façade is within the guidelines of the zoning regulations and relevant historic architecture guidelines.
VI. Home Renovation Loan Application
To request a forgivable home renovation loan, the staff member must:
- Schedule an appointment with Althea Wallace, Director of Programs & Events (alw322@drexel.edu/215-895-2582) to discuss and confirm eligibility.
- Submit the following documents (prior to renovation):
- completed application
- detailed description of renovation(s) and expected contractor’s estimation or
- estimated materials cost if owner plans to complete renovations
- Provide a “Pre-Purchase Certification”: Certify, prior to settlement that the staff member owns and occupies the property as their principal residence.
- Forgivable home renovation loans will be made payable to the contractor or will be made on a reimbursement basis to the home owner after proof of renovation completion, provided the eligible staff member still meets all eligibility requirements on the closing date.
VII. Home Renovation Loan Eligibility
In order to be eligible under these guidelines, the staff member must be a full- or part-time benefit eligible active employee of Drexel/DUCOM, on the date of the renovation of the property. Staff members on non-paid leave, regardless of the reason for the leave, are not eligible until they return to active paid.
VIII. Tax Liability
All forgivable loans are subject to Philadelphia wage taxes and state and federal income taxes.
IX. Preferred Partner Mortgage Banks
- Drexel/DUCOM has formed a relationship with partner mortgage banks who will offer qualified Home Purchase Assistance program applicants discounted mortgage rates and waived fees.
- All partner mortgage banks have local branches near and on Drexel’s Main campus for convenience.
- Each partner mortgage bank has received a Community Reinvestment Act rating of “compliant,” meaning that they actively lend to neighborhood area residents and businesses.
- Applicants will have the option of applying for a mortgage with one or up to three partner mortgage banks to ensure that they receive the best possible rate on their mortgage.
X. Relocation Assistance
- Drexel/DUCOM has partnered with Coldwell Banker to offer staff members discounted real estate services, temporary housing services, financial services, and professional moving service.
- Staff members choosing to use Preferred Moves will receive the Benefit of a Preferred Moves counselor within 24 hours of enrollment.
- For additional information contact: Joanne L. Whitby at 484-654-1088 or jwhitby@cbpref.com.
XI. Moving Assistance
- Drexel/DUCOM has partnered with Corrigan Moving Services / United Van Lines to offer staff members discounted rates on interstate and international moving services. Local moves are priced using hourly rates. Corrigan Moving Systems is an award winning, full-service transportation & moving company providing relocation for families and businesses.
- Drexel/DUCOM has partnered with Whalen’s Allied Van lines to extend the premier services to staff members, students, retirees and alumni may take advantage of these benefits: household moving and related services, lab relocation project management, special products transportation, international moving services and relocation tax information.
Contact Information
For information and details or to schedule a consultation contact:
Althea Wallace
Director, HR Programs & Events
Human Resources
Phone: 215.895.2582 | Fax: 215.895.5813
alw322@drexel.edu
Drexel Human Resources also provides administrative support for all HR services and functions at Drexel University’s separate, not-for-profit subsidiary, Drexel University College of Medicine. Drexel University is not involved in patient care provided by Drexel Medicine.