Drexel will provide a forgivable loan to eligible faculty and professional staff members toward the purchase of a home with the following parameters:
To request a forgivable home purchase loan, the faculty or professional staff member must:
- Schedule an appointment with the Courtney Claiborne at firstname.lastname@example.org or 215.895.1666 to discuss and confirm eligibility.
- Submit the following documents (prior to closing):
Complete a Home Purchase Loan Agreement, certifying, prior to settlement, that the faculty or professional staff member will own and occupy the property for at least five years after the date of purchase.
Provide four "Post-Purchase Certifications", certifying, after settlement, on December 31st of the purchase year and on December 31st of each succeeding year for the next five years, that the faculty or professional 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 faculty or professional staff member still meets all eligibility requirements on the closing date.
Should the faculty or professional staff member cease to occupy the home during the five-year period, or is terminated, the faculty or professional staff member agrees to repay a pro-rated portion of the loan amount to Drexel based on the following schedule:
- mortgage approval
- signed Promissory Note and Open-End Mortgage documents
- mortgage commitment letter
- confirmation of closing date
- After first anniversary and before second anniversary of closing date: $12,000
- After second anniversary and before third anniversary of closing date: $9,000
- After third anniversary and before fourth anniversary of closing date: $6,000
- After fourth anniversary and before fifth anniversary of closing date: $3,000
In order to be eligible under these guidelines, the faculty or professional 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. Faculty or professional 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.