UAH PRogram FAQ's
- What is the purpose of Loyola's UAH Program?
- Encourage home ownership in the city of Chicago, near the Lake Shore and Water Tower campuses.
- Enhance work- life balance by decreasing commuting time to and from campus.
- 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 Chicago's 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 within the following community areas: Rogers Park, Edgewater, Uptown, Lakeview, Lincoln Park, Near North Side and the Loop, as identified .
- 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 mortage readiness assessment conducted by the non-profit housing organization, Rogers Park Community Development Corporation (RPCDC).
- 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 2 person 3 person 4 person 5 person 6 person 7 person 8 person $61,800 $70,650 $79,500 $88,300 $95,400 $102,450 $109,500 $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.
- What are the tax implications if a faculty or staff member receives a UAH program loan?
The amount of the loan that is forgiven in any one year constitutes as taxable income to the faculty or staff member and 20 percent of the loan amount will be forgiven each year. 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?
- Obtain an eligibility application from Human Resources
- Attend UAH’s Home Buyer Education and Counseling course (3 hours)
- Develop your own Housing Access Plan during the one-on-one mortage readiness assessment with RPCDC.
- RPCDC issues a home ownership education course completion certificate.
- The University verifies if you still meet UAH program eligibility requirements.
- You sign a loan agreement and a promissory note with RPCDC.
- UAH program funds issued at closing
- Faculty or 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 visit www.luc.edu/hr/uahprogram.shtml to receive an Eligibility Application.