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Because it's not that bad of an idea...

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Services for Real Estate Pros with Auto & Home & Life Insurance throughout North Carolina

Early last month, one of the loans I closed had two interesting variables:

  • The client had contacted me via this site over a year ago, starting his plan to buy a home.
  • I was introduced to a program that I wasn't astutely familiar with, The Philadelphia Home-Buy-Now Program.

After learning a bit more about it, I thought it was a pretty good idea.  While I didn't know all the facts, some of the philosophies behind this program made perfect sense to me.  The standpoint they come from is one that employees who are homeowners in the city where they work are more productive and are more akin to staying at their jobs for a longer term.  They commute less, spend more time with their families, and even pollute less (I guess it must be that driving thing).  All those points are laid out in some of the information I was perusing about The Philadelphia Home-Buy-Now Program

Here's a brief breakdown of how it all works:

Step Numero Uno:  A group of folks from the Program work with the employer and eventually the employees to create a customized program to suit everyone's needs.  The Programs can be tailored for specific neighborhoods, to attract employees in specific professions, and to help match up the best and brightest employees and employers to help enhance the overall health of the community.

Step Two:  When an employee of a company who is a part of the Philadelphia Home-Buy-Now Program sets out to buy a home, that person will be able to count on full support from the staff working with this public/private matching funds program.  The employer can contribute as much as they'd like to their employee's purchase, and then the City of Brotherly Love will match the contribution up to $5,000.00!  In certain cases, private developers will then provide additional matching funds up to $7500.00!!  Those particular cases are dependent on the purchase of homes in select developments.

Step Three:  That's pretty much it.  With an employer's investment of just $5000.00, that may turn into a piece of change equaling $17,500 as an investment that will pay returns to the company, the employee, and of course, the very community of Philadelphia.

There are no income eligibility limits to obtain City matching funds.

Here's a brief list of Philadelphia employers already on board:

Citizens Bank ~ Temple University

Episcopal Community Services ~ Fannie Mae

Germantown Friends School ~ Keystone Mercy Health Plan

NewCourtland Elder Services ~ Saint Joseph's University

University of the Sciences ~ University of Pennsylvania

Some of the areas where homes have been purchased through this program since its implementation in the Fall of 2004 are Chestnut Hill, Fern Rock, Germantown, North Philadelphia, Oak Lane East, West Mount Airy, and West Coast Lane

So any potential Homebuyers, Sellers, Realtors, & Employers in the Philadelphia area may want to check this thing out.  Being on the lending side of the transaction that closed last month with this program, I can tell you that the process was pretty streamlined.

 

For More Information, Visit www.empowermentzone.org/hbn or contact Jim Flaherty at jim.flaherty@phila.gov

 

Jason Sardi

Mortgage Consultant

610-653-0317

jsardi@ihmci.com

 

 

Jennifer Monroe
Indigo Home Team powered by Compass - Charlotte, NC
Real Estate REALTOR®/Broker/Designer
Wow! This is an excellent idea. Maybe we should move ;)
Jun 24, 2009 08:50 AM
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Jason,

Well done and very interesting. I've seen this before tried to talk one company into some thing similar, didn't get very far. They did bring me in to talk to their staff about buying.

Bill

Jun 24, 2009 08:50 AM
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

"The standpoint they come from is one that employees who are homeowners in the city where they work are more productive and are more akin to staying at their jobs for a longer term."

...makes perfect sense to me so I hope that the program flourishes in your part of the world! Hope your doing well, as usual I am way too busy but happily so.

Hi Jennifer!

 

Jun 24, 2009 09:07 AM
Larry Bettag
Cherry Creek Mortgage Illinois Residential Mortgage License LMB #0005759 Cherry Creek Mortgage NMLS #: 3001 - Saint Charles, IL
Vice-President of National Production

Dude....too cool.  I've seen something similar with Herocare.  Just very good indeed.  Love some of these niche programs, but hate getting set up with others.

Jun 25, 2009 01:37 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

Interesting, Jason!  Keep us informed of how it's working in your area.

Debe in Charlotte

Jun 25, 2009 04:01 PM
The Somers Team
The Somers Team at KW Philadelphia - Philadelphia, PA
Delivering Real Estate Happiness

Jason - Very cool indeed !  I did a deal not too long ago for a young man who worked at Temple University who received a grant not only from the city but from the University as well.  And he qualified for the tax credit.  Ching-ching for him : ) .  These are great programs.  You would think that you would hear more about them.

Jun 27, 2009 12:51 AM
Michelle Chamberlain
Above All Financial Services -Pennsylvania Mortgage Broker - Secane, PA
Suburban Philadelphia Mortgage Broker

it is my understanding that mortgages under this program are limited to a short list of approved local banks.  is this no longer the case?

Jun 29, 2009 04:00 PM
Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Jennifer- Considering my client bartends part-time down there and is pretty happy with the way things went down, that may not be a bad idea;)

Bill - It was new to me but turned out pretty swell.  That's one of the things I love about this biz, you learn something new nearly every day.

Russell - When I read up on it, I liked it.  As it turns out, I still like it.

Larry - I know what you mean.  There was a bit of caution on my part in diving into this because of such things.  A little due diligence and this turned out to be the real deal.

Debe- I'm definitely on the look out for viable programs in any local areas I service... mortgage-wise, at least:)

Chris & Steph- Sounds like a similar scenario and with the tax credit to boot. 

Michelle - When I first saw the paperwork on that grant program, that was my initial concern and thought as well.  I think there was about sixteen or so local banks and other lenders that were on their 'approved' list.  Those were the old guidelines of this grant program, though.  The way it works now (from the horse's mouth) is any lender can do the mortgage as long as they aren't labeled or defined or found out to be a predatory lender.  So, under the most recent guidelines, having to be on an 'approved' list of lenders is not the case.

Jun 29, 2009 04:41 PM
Suzanne McLaughlin
Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN
Sabinske & Associates, Realtor

Jason, you have always been an expert at explaining things like this so that even I can understand it.  Your new profession will be just as crucial to our understanding of the insurance processes!  I can't wait to see more from you!

Sep 25, 2012 07:08 AM