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Using Forgivable Loan Funds Toward a Home Purchase

Eligible employees can receive up to $7,500 and use funds towards closing cost fees.  The forgivable loan will be in the form of a check written to the title company at settlement that will take place in the PHOS offices.

  • The forgivable loan with a forgiveness period of five years.  The employee will need to stay in the home as their primary resident for a total of five years, at the end of which time the loan will be completely forgiven.  There will be no payments or interest during the five year forgiveness period, should the home remain as your primary residence.
  • The forgivable loan will be a lien against your property, will be recorded with the City of Philadelphia and removed after the five years is complete. Please contact our office to discuss fees associated with the loan.
  • The forgivable loan can be be used in conjunction the Closing Cost Reduction Program (CCRP).
  • A borrower must meet minimum credit requirements to qualify for a forgivable loan.  The availability of forgivable loans is subject to the program's annual funding limitations.  The final decision regarding eligibility in the Forgivable Loan Program is at the discretion of Penn Home Ownership Services.