Home Purchase Loan
Drexel will provide a forgivable loan to eligible faculty and professional 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, 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 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 participating-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 home ownership benefit.
- Nothing in this guideline changes the at-will relationship between the parties.
Home Purchase Loan Application
To request a forgivable home purchase loan, the staff member must:
- Schedule an appointment with the Courtney Price at email@example.com/215-895-1666) 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
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 employee of Drexel, 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.
All forgivable loans are subject to Philadelphia wage taxes and state and federal income taxes.