How do I know my Interest Form was received?
A webpage will inform you the Interest Form has been submitted and to continue to monitor your email for next steps.
What are the next steps after completing the Interest Form?
If you meet the prequalification screening process, you will be contacted by a PHDC Housing Counselor for next steps once your first-choice neighborhood is available. You will need to provide documentation for every household member 18+ that will reside in the home. You will need to provide paystubs for two months, two years of tax returns, and a copy of the photo ID. Please note, paystubs must be submitted for all full-time and part-time employment along with any other additional income such as SSI for all members of the household.
Is the income qualification based on my net pay or gross pay?
Income is based on your gross pay (before taxes and deductions). Your income is based on the gross amount which is the amount before all payroll taxes and payroll deductions. Please see Box number one on your W2 form for the amount which will be used.
What if I pass away before the mortgage is paid? Does this mean my family will have to give up the home?
There is no way to ensure that the surviving spouse or family members not listed on the deed and the mortgage would be able to assume the Turn The Key mortgage. Each case would have to be examined as there are estate laws, wills and other variables that would need to be reviewed.
My income increases before I am approved for Turn The Key. Will I still be able to complete the process based on my pre-screening income?
Yes.
I have student loan debt. Am I still eligible for Turn The Key?
You may still be able to purchase a home through the Turn The Key Initiative. Please consult with the agency which services your student loans. Also, you should review the qualification requirements for the Public Service Loan Forgiveness (PSLF) program if you have loans managed by the federal government. https://studentaid.gov/manage-loans/forgiveness-cancellation/public-service.
If my student loans are in default, am I eligible.
Please speak with the agency which services your student loans. “Loan rehabilitation is one method of getting your student loan out of default. You can get out of default by making a certain number of consecutive, on-time payments to your loan holder under a rehabilitation agreement. To begin the loan rehabilitation process, you must contact your loan holder.” https://studentaid.gov/help-center/answers/article/loan-rehabilitation
I am single, am I eligible to purchase a home?
Yes, you are eligible to purchase a home as part of the Turn The Key initiative as a household of one with a maximum household income of $73,780 as per the income guidelines.
I have a felony record. Am I able to get a mortgage to purchase a home through the Turn The Key initiative?
Please speak with a mortgage lender regarding loan qualification criteria.
How are home buyers selected?
You can move through the process by becoming income certified along with receiving your housing counseling certification and documented mortgage approval. Your information will be sent to developers based on the neighborhoods you have expressed interest in. Developers will have a member of their sales team contact you directly to tour the various properties.
I have recently completed housing counseling and I have documented mortgage approval. Must I attend the housing counseling with the Turn The Key housing counseling agency?
If you have received your housing counseling certificate through a City-funded housing counseling agency within the last 12 months, you will only be required to review the portion of the housing counseling session which will be specific to the Soft Mortgage/Soft Loan/Mortgage Buydown/Non-Serviceable Loan related to the Turn The Key initiative. You must present the housing counseling certificate to PHDC when you are approved to begin the Turn The Key housing counseling.
What would be the monthly mortgage payment for a Turn The Key home?
Mortgage payments are not a set amount based on the cost of the home. Consider the larger the down payment on the home, the lower your mortgage payments could possibly be.
May I take out a loan against the equity in the home?
You may refinance to lower the mortgage payment or for a home improvement loan such as Restore, Repair, Renew (RRR).
How much will my mortgage payment be each month?
Mortgage payment amounts are not set. There are variables such as the buyer’s credit score, interest rate, down payment, etc. However, the goal of the initiative is to have mortgage payment less than the average monthly rent for a two-bedroom apartment in Philadelphia which is about $1,700.
If I refinance the mortgage on the Turn the Key home, does this restart the 20-year mortgage as noted in the Declaration of Restrictive Covenants (DoRC)?
No, the 20 year mortgage date does not restart.
What is a Soft Mortgage/Soft Loan/Mortgage Buydown/Non-Serviceable Loan?
$280,000 Cost of the home*
$ 75,000 Soft Mortgage/Soft Loan Mortgage Buydown/Non-Serviceable Loan*
$205,000 Monthly mortgage payment based on this amount*
Total Mortgage Payment will include Mortgage, Interest, Taxes, Insurance (MITI)
$ 75,000 Equity in home (you do not make mortgage payments on this amount)*
*PLEASE NOTE: This is for illustration purposes only. Cost of home and mortage buydown amount may vary.
I have viewed the photos online of the homes currently being built. Are there model homes available to visit?
Yes, there are model homes available to visit and some developers have virtual tours available. The developers have open houses available every week either during weekday evenings and/or weekends. Homes are currently available for pre-sale.
Are any of the homes ADA accessible?
No. However, the buyer can make any renovations to the home to accommodate their specific needs.
Is off-street parking or garages available for these homes?
Currently, some of the homes being built in the Sharswood/ Blumberg neighborhood have off-street parking. There are no homes with garages.
Are the Turn The Key homes eligible for the Homestead exemption?
Property owners with a 10-year residential tax abatement are not eligible. You may apply after the abatement expires.
May I make exterior and interior renovations on the home?
Yes, you may make exterior renovations such as painting or interior renovations such as changing the flooring
Can a home be purchased as an investment/rental property through the Turn The Key initiative?
No, the home must be the primary residence for the term noted in the deed restriction or as otherwise stated.
If I am no longer interested in the Turn The Key Initiative, may I use the mortgage buydown for a home of my choice?
No, the mortgage buydown is only available for the homes which are being built as part of the Turn The Key initiative.
Are all the expenses related to buying a home such as down payment and closing cost covered?
All homebuyers are expected to have about $3,000 – $5,000 towards the down payment, closing cost and other related home buying expenses such as home inspections. Speak to your housing counselor about grant programs which may be available such as Philly First Home. Your lender may also be able to help through a grant(s).
If I sell the home within the 15-year period, will I receive the full value of the home?
You will need to contact the Land Bank. The Land Bank will recalculate the price of the home with the goal of keeping the home affordable and the new buyer meeting the income guidelines for the Turn The Key initiative. However after year 20 when the soft mortgage has been satisfied, you may sell the home for the full value.
How are the income guidelines determined for Turn The Key?
Income guidelines for Turn The Key are based on the U.S. Department of Housing and Urban Development (HUD) income guidelines.
What is the required credit score?
Your credit score should be around 640. However, there may be loan products available for the purchase of your home even if your score is a little lower. The higher your credit score and the lower your debt-to-income ratio, you improve your chances for lower mortgage interest rates.