UAH PRogram FAQ's
- What is the purpose of Loyola's UAH Program?
- Increase the access to and the affordability of housing for faculty/staff near the Loyola Campuses.
- Enhance work- life balance by decreasing commuting time to and from campus and encouraging homeownership.
- Improve quality of life for faculty and staff by facilitating home ownership.
- Increase involvement in campus life (curricular and extra-curricular events & programs) by encouraging faculty and staff to live near campus.
- Invest in neighborhoods and communities around the Loyola campuses.
- Who is eligible for the UAH Program loan?
In order to qualify for the loan, faculty and staff must meet all of the following criteria:
- Must have completed one year of full-time, benefits eligible service with Loyola University Chicago.
- Must purchase a home (as primary residence) within the program areas.
- Must be a faculty or staff member in “good standing” and with prospects of continued full time employment.
- Attend UAH’s Homebuyer Education and Counseling session (3 hours) & the one-on-one mortgage readiness assessment and demonstrate a commitment to working with the UAH Program by meeting pertinent regulations stipulated by participating lenders, including, but not limited to credit counseling and additional education.
- Must be able to qualify for mortgage financing with an interest rate of no more than 200 basis points above the Fannie Mae conventional 30 year mortgage rate.
- Must be able and willing to contribute at least $1000 or 1% of the purchase price, whichever is greater from own savings.
- What is the total number of UAH program loans that will be given in one year?
UAH program loans are limited to no more than 25 forgivable loans per year and will be processed on a first come, first serve basis.
- How are UAH program loan amounts determined?
Each year, the program will provide up to 25 eligible faculty or staff with a five-year forgivable loan of up to $10,000; however, the amount of the loan given will depend on the faculty or staff member's median household income (MHI) and the geographical location of the purchase location, as described below:
Income Level (Red) Target Area A (Yellow) Target Area B At or below 120% of MHI $10,000 $7,500 Above 120% of MHI $7,500 $5,000
*Please refer to the program map for target areas.
1 person $61,800 2 person $70,650 3 person $79,500 4 person $88,300 5 person $95,400 6 person $102,450 7 person $109,500 8 person $116,600
To calculate household median income count all the individuals who will live in the home, and include all of their gross (pre-taxed) income in the overall household income. *The above chart shows 120% AMI as of 12/2012 and is effective until superseded.
- What is a forgivable loan?
If approved for a loan, a faculty or staff member does not have to repay the loan, provided that for five years from the date of purchase:
- Remains employed by the University
- Maintains ownership interest in the purchased property, and
- Continuously occupies the purchased property as the principal residence
- Does not refinance the property for cash.
If a faculty or staff member fulfills the requirements noted above for five (5) years, there is no obligation to pay back any money. However, in the event a faculty or staff member does not satisfy these requirements, any amount that has not been forgiven will become immediately due.
- What are the tax implications if a faculty or staff member receives a UAH program loan?
During the five years following the employee’s date of purchase, 20 percent of the loan amount will be forgiven each year. The amount of the loan that is forgiven in any one year constitutes taxable income to the employee. Faculty and staff members will see the imputed income (forgiven loan amount) added to their paychecks and appropriate federal, state and social security taxes withheld.
- What are the steps to Home Ownership?
- Complete the eligibility application at http://www.luc.edu/hr/forms/uah_app.shtml
- Human Resources verifies if you meet the eligibility requirements.
- Schedule & attend the Homebuyer Education and Counseling course conducted by our non-profit partners, Northside Community Development Corporation, who administers the Lakeside program areas and West Cook Homeownership Center, who administers the Health Sciences program areas.
- Develop your own housing access plan during the One-on-One Mortgage Readiness Assessment conducted by our non-profit partners.
- Non-profit partner issues a home ownership education course completion certificate.
- Remember to contact the non-profit partner once you have a closing date scheduled.
- Human Resources verifies if you still meet UAH program eligibility requirements at time of closing.
- You sign a loan agreement and a promissory note with non-profit partner at closing.
- UAH program funds issued at closing - Faculty / Staff member becomes a home owner.
- How do I apply for the UAH program loan?
Interested faculty and staff members can contact Human Resources at 312-915-6175 or visitwww.luc.edu/hr/uahprogram.shtml to complete an Eligibility Application.