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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 48th Streets and Chestnut Street to Girard Avenue.
  • The property must be owner occupied and remain the faculty or professional 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 faculty or professional 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 faculty or professional staff member decides to sell the property purchased through the Home Purchase Assistance Program, 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.
  • Faculty or professional staff members may obtain mortgages using 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 these guidelines changes the at-will relationship between the parties.

Home Purchase Loan Application Procedure

To request a forgivable home purchase loan, the faculty or professional staff member must:

  1. Schedule an appointment with the Courtney Claiborne at cnp45@drexel.edu or 215.895.1666 to discuss and confirm eligibility.
  2. Submit the following documents (prior to closing):
    • mortgage approval
    • signed Promissory Note and Open-End Mortgage documents
    • mortgage commitment letter
    • confirmation of closing date
  3. 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.
  4. 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.
  5. 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.
  6. 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:
    • 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

Home Purchase Loan Eligibility

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.

Tax Liability

All forgivable loans are subject to Philadelphia wage taxes and state and federal income taxes.