The Settlement Assistance program is designed to increase the number of employee-owned and occupied residences within the Lancaster General Hospital neighborhood by making purchasing a home more affordable. With the Settlement Assistance program, eligible employees may apply to Lancaster General Health for a deferred payment loan of up to $10,000. Payable at settlement, the funds may be used to assist with various closing costs.
The Settlement Assistance program can be used in conjunction with the Mortgage Insurance program. Below are the parameters of the Settlement Assistance program:
- The maximum purchase price is $200,000 or the prevailing conforming loan amount or the financial institution's appraised value, whichever is less.
- Only one or two-family dwellings are eligible.
- Dwellings must be located in the area defined by the attached map.
- Applies only to mortgages obtained through financial institutions.
- All normal lending criteria required by the financial institution must be met.
- The financial institution will determine the mortgage approval criteria and the interest rate.
- The home must be and remain employee's principal residence.
- The Lancaster General Health loan will be forgiven at 20% per annum over five years (subject to IRS regulations).
- The unforgiven balance of the Lancaster General Health loan granted under this program will be due and payable if:
- the mortgagor ceases to be a fulltime employee (defined as a minimum of .8 FTE designation) Lancaster General Health
- the employee ceases to occupy the property as his/her principle residence
- the employee ceases to be the owner of the property
- Lancaster General Health funds may be used for down payment and closing costs.
- The Lancaster General Health program is offered to eligible credit-worthy employees under an arrangement with the financial institution. An applicant for a loan under the program will be subject to credit verification and must satisfy the financial institution's criteria related to the ability to repay the loan. The decision to grant the bank loan rests solely with the financial institution.
- If the employee ceases to be employed fulltime by Lancaster General Health, ceases to occupy the home as a principal residence or ceases to own the home, it is the employee's responsibility to notify Lancaster General Health within 24 hours.
- Applicable payroll taxes will be deducted from the employee's paychecks beginning one month after the settlement date. An estimated amount per paycheck will be provided for the employee.
- Fulltime (defined as a minimum of .8 FTE designation) employees of Lancaster General Health.
- Employment of a minimum of 90 days and employment in good standing.
- The program applies only once, regardless of how many employees reside in the household.
- Not available to employees who already own a home and reside in the established area.
- Officials of Lancaster General Health and those individuals classified as "highly compensated" (by IRS definition) are not eligible for this program.
- The employee must complete the Lancaster General Health Home in the City Program Eligibility Form and submit it to the Lancaster General Health Home in the City Program Administrator. Forms can be obtained at the Alliance Property Services office located at 607 N. Duke Street or by visiting the Lancaster General Health Intranet and clicking on Human Resources and then "Home in the City."
- The employee is encouraged to submit the Lancaster General Health Home in the City Program Eligibility Form early in the process of considering a new home purchase.
- The Home in the City Program Administrator will notify employee of acceptance of eligibility.
- Prior to beginning the search for a home, the employee should contact a representative from a financial institution which provides home mortgages and determines mortgage amount eligibility.
- It is recommended that the employee interview several realtors, check references and then select a realtor to assist with the home search.
- First-time homebuyers must complete the workshop offered by the Lancaster Housing Opportunity Partnership (LHOP). To register for the workshop, visit the LHOP Web site at www.lancasterhousing.org.
- The employee can review the Lancaster General Health Home in the City Housing Program Agreement. Forms can be obtained at the Alliance Property Services office located at 607 North Duke Street or by visiting the Lancaster General Health Intranet and clicking on Human Resources and then "Home in the City."
- Before an offer can be made on a specific property, the employee must receive verification from Lancaster General Health that the home qualifies for the program. The Program Administrator will confirm qualification to the employee and the financial institution.
- The Program Administrator will determine if the property is located in the primary or secondary housing area (see attached map). This will determine if employee is eligible for a maximum of $10,000 (primary) or $5,000 (secondary) toward settlement costs.
- Prior to signing an Agreement of Sale, Lancaster General Health recommends that the employee secure the services of an attorney knowledgeable in real estate matters.
- After the employee and the seller have an executed Agreement of Sale, the employee must send a copy of the signed Agreement of Sale to the Program Administrator.
- The employee must contact and work with the financial institution to complete the mortgage application process.
- Lancaster General Health will obtain verification directly from the financial institution, when the mortgage has been approved, along with a copy of the Buyer's Estimated Costs and Deposit Money Notice.
- Prior to settlement, Lancaster General Health will again confirm eligibility.
- The Program Administrator will contact the employee to schedule a pre- settlement conference.
- The Program Administrator will provide the employee with the approved loan amount and an estimate of the payroll tax impact during the pre-settlement conference.
- The employee will bring a signed original of the Lancaster General Health Home in the City Program Agreement to the pre-conference meeting.
- Prior to settlement Lancaster General Health will wire transfer an amount equal to the approved settlement costs to the settlement agent.
- After completion of the settlement, employee will send a copy of the Settlement Cost Sheet signed by the buyer and seller, to the Program Administrator.
- Under no circumstances may the employee receive cash at settlement.
This information is intended only as a general review of Lancaster General Health's programs. The mortgage will be governed by the detailed terms and conditions of the mortgage loan documents, including the note and mortgage, and the Lancaster General Health Home in the City Housing Program Agreement. If there is any inconsistency between this program's description and those documents, the terms and conditions of the note, the mortgage and the Lancaster General Health Home in the City Housing Program Agreement shall prevail.
This information is intended as a general overview only. The terms, conditions and procedures of the programs are subject to change at Lancaster General Health's discretion. Employees are urged to seek the advice of knowledgeable legal counsel when contemplating a real estate purchase.
Any questions regarding the Program may be directed to the Program Administrator at (717) 544-5231.