PNHS Loans and Products

Philadelphia Neighborhood Housing Services, Inc. (PNHS) is a certified Community Development Financial Institution (CDFI) serving low and moderate income residents of the City of Philadelphia with loans and financial products for home improvement and purchase money mortgages.

PNHS offers alternative for residents, who may not meet the loan qualifying standards of conventional lending institutions. PNHS provides these customers with option other than high interest rate loans offered by many high risk, sub prime and predatory lenders.

The products offered by PNHS include internal funding resources as well as special products offered by conventional lenders, government and/or quasi-government agencies. These products have more flexible underwriting or loan approval criteria for higher risk customers without the accompanying higher interest rates generally associated with these loans. Credit scores may be lower, customer expenses may be higher and customer capacity may be more limited. In spite of these challenges, Loans offered through PNHS and our lending partners carry with them very competitive interest rates and flexible repayment terms.

PNHS' loan review process involves finding the best product to suit the customer. If a customer qualifies for a conventional loan product, then we will refer them to a reputable lender. If the product best suited to meet the needs of the customer is one we offer that will be known. To the greatest extent possible repayment terms are flexible to insure affordable re-payments based on the customers' preferences.

Please contact PNHS at (215) 476 - 4205 for more information and up to date interest rates and terms

PNHS loan products and services are available exclusively in the City of Philadelphia.

Official documents required for application:

1. $150.00 Non refundable loan application fee.
2. Social Security number for (you and your spouse)
3. References: name of nearest relative not living with you
4. Mortgage statement and Deed
   • name, address and account
   • number of mortgage company
   • purchase price and date of purchase
   • present mortgage balance
5. Verification of Expenses
   • gas or oil bill
   • electric bill
   • water and sewer**
   • real estate taxes**
   • mortgage payment
   • fire or homeowners insurance premium if not escrowed (not included in mortgage payment)
   • telephone bill
6. Verification of employment and income
   • pay stubs,
   • statements from social security,
   • disability, public assistance, child support (if to be considered), or rental income.
7. Fixed monthly expenses: credit cards, auto loans, bank or finance company loans, department stores, etc.
   ** If this is not current, you must secure a repayment agreement

Products

Home Improvement Loans:
The Revolving Loan Fund is a tool for providing home improvement money to homeowners who can't borrow from banks or other lenders at flexible rates or underwriting. The maximum amount available to borrow is $30,000, maximum term of the loan is 240 months (20years), and present interest rate is below market. Eligibility requirements include that the client live in PNHS’ target area and fall within the H.U.D.Section Eight 115% of median family income.

Purchase Money Mortgage Loans:
There is no ceiling on the amount that can be borrowed but subject to available funds; the maximum term of the loan is 360 months (30 years). Eligibility requirements are defined specifically and clients must attend housing counseling sessions. Low or below market interest rate and flexible terms.

Foreclosure Prevention Remediation Loans:

PNHS makes loans out of our Revolving Loan Fund to pay the fees associated with foreclosure filings as a means of reducing immediate out of pocket expenses associated with stopping the foreclosure action. Eligible homeowners would be able to borrow the funds needed to pay the attorneys and sheriff fees, from PNHS, at a reduced rates and terms. The loans would be paid off over an extended period of time so as to keep the payments affordable. For homeowners determined to not be in a position to re-pay another loan, PNHS may defer principal and interest repayments for a period up to five years, subject to justification and PNHS Loan Committee review and approval. This provision would include a pre-paid out of pocket expense for servicing cost prorated for each year of the deferment. The loan would be contingent upon the homeowner having a satisfactory agreement with the lender based on established HUD Loss Mitigation tools and strategies, work outs with lenders including loan modifications and repayment plans. Escrows for taxes and insurance would have to be established and/or brought current. All delinquent taxes and/or water & sewer rents would have to be current or under current re-payment agreements. Funds would only be released to the lender for disbursement.

Foreclosure Prevention Remediation Loan Terms and Requirements:

• RATE: 7.20%
• AMORTIZATION PERIOD: Maximum 120 months; maximum deferral of 18 months
• TRANSACTION TYPE: Payment of legal and sheriff's fees only to prevent for foreclosure
• PROPERTY TYPE: Single family or 1-4 unit attached/detached dwellings, condos and Plan Unit/Developments (PUDs)
• OCCUPANCY: Owner-occupied primary residence
• LOCATION: City of Philadelphia
• INCOME LIMITS: At or below 115% of area median income adjusted for family size
• MAXIMUM LOAN AMOUNT: $5,000
• MAXIMUM LTV: 80%
• QUALIFYING RATIOS: 33% / 45%
• CREDIT DOCUMENTS: Recent credit file report is required and cannot be in bankruptcy; no current bankruptcy application
• INCOME DOCUMENTS: Full/Alternate documentation
• FEES: $150 application fee (covers cost of loan processing, credit report, and other fees)
• CONTACT: Denise Jefferson-Bailey or Henry Moore at 215-476-4205; FAX 215-476-4271

Tax and Insurance Escrow Financing and Service Loans:

This loan product uses the resources of PNHS' Revolving Loan Fund to pay off delinquent tax liens and to re-establish suitable property insurance coverage. Homeowners participating in this program would have to have paid off the existing first mortgage and there would be no other lender maintaining an escrow account. Taxes would have to be at least one year in arrears. Under this program, PNHS would lend the homeowner the funds needed to pay delinquent real estate taxes. The homeowner would be required to agree to loan repayments including assessments for tax and insurance escrows. Loans would be secured by mortgage and note. PNHS would consider a mortgage position no lower than second. PNHS may consider third position in a situation where there is a soft second and a request for subordination has been denied.

Tax and Insurance Escrow Financing and Service Loan Terms and Requirements:

• RATE: 6.20%
• AMORTIZATION PERIOD: Maximum 180 months
• TRANSACTION TYPE: Payment of real estate taxes and homeowner insurance escrow for future payments
• PROPERTY TYPE: 1-4 unit attached/detached dwellings, condos and Plan Unit/Developments (PUDs)
• OCCUPANCY: Owner-occupied primary residence
• LOCATION: City of Philadelphia
• INCOME LIMITS: At or below 115% of area median income adjusted for family size
• MAXIMUM LOAN AMOUNT: $5,000
• MAXIMUM LTV: 50%
• QUALIFYING RATIOS: 28% / 38%
• CREDIT DOCUMENTS: Recent credit file report is required
• INCOME DOCUMENTS: Full/Alternate documentation
• OTHER REQUIREMENTS: Head of household; real estate taxes must be at least one year in arrears; all payment options available through the City of Philadelphia must be exhausted; post-purchase counseling
• FEES: $150 application fee (covers cost of loan processing, credit report, and other fees)
• CONTACT: Denise Jefferson-Bailey or Henry Moore at 215-476-4205; FAX 215-476-4271

The Pennsylvania Housing Finance Agency (PHFA), Keystone Renovate & Repair Loans:

This product is available through PNHS, which serves as a Local Program Administrator approved by PHFA to originate loans under this program. The Renovate & Repair Loan Program is designed to meet serious housing issues for many of Pennsylvania's homeowners: how to make their home a healthy, comfortable place and a financial asset. The unique Renovate and Repair collaboration between PHFA, lenders and local housing organizations (including PNHS) has been developed to assist homeowners in avoiding common pitfalls in home improvement projects such as homeowners being taken advantage of by unscrupulous lenders and contractors, poor quality and unnecessary repairs.

Pennsylvania Housing Finance Agency, Keystone Renovate & Repair Loan Terms and Requirements:

• Interest rates based on market conditions and length of time requested by homeowner to repay loan
• Household incomes no greater than approximately 150% of statewide median income adjusted for higher income areas. In the City of Philadelphia, this maximum household income is presently $116,700
• Satisfactory credit (a credit score of 580 or above in the City of Philadelphia)
• Occupant homeowner or currently in process of purchasing
• Adequate income to support monthly loan payment
• 10, 15 or 20 year fixed rate
• Low fees
• Maximum loan $35,000 or 120% of property's combined loan to value
• No pre-payment penalty
• Local Program Administrator oversight of project
• Loan escrow
• For home improvements only

PNHS loan officers screen and qualify borrowers for other products offered by lending partners:

The PHIL Loans, offered by Citizens Bank, PNC Bank, United Bank and TD Bank:

The Redevelopment Authority of the City of Philadelphia operates the Philadelphia Home Improvement Loan (PHIL) Program, which provides Philadelphia homeowners with extremely affordable loans for home repairs. To be eligible for a PHIL loan, the property must be an owner-occupied residence located within the City of Philadelphia, residences with 1-4 units. Lenders set their own terms, conditions and fees. Qualified applicants for a PHIL loan must own and occupy the property as well as meet the lender's credit worthiness requirements.

PHIL Loan Terms and Requirements:

• Interest rates of 3% and 5% based on income
• No application fees
• No recording fees
• No points
• Terms up to 20 years