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What is the difference between the University-Area Home Ownership Program (UHOP) and the Guaranteed Mortgage Program (GMP)?
- The main differences between the two programs are the available lenders, the amount of the home price that can be financed, and the option for a home improvement loan. UHOP is administered by Solvay Bank and allows up to 100% financing of the home’s purchase price. Additionally, the borrower has up to 12 months from the closing of their mortgage to apply for a forgivable home improvement loan (up to the lesser of 10% of the purchase price of the home or $15,000). By contrast, the GMP is administered by three lending institutions: Empower Federal Credit Union, Tompkins Country Trust Bank, and Summit Federal Credit Union. This program requires 100% financing of the home’s purchase price and does not offer a home improvement loan component.
Who is eligible for UHOP and the GMP?
- All regular full-time faculty and staff and regular part-time faculty and staff of Syracuse University are eligible for UHOP and the GMP. If you have questions about your employment status or whether you qualify for the program, please contact Human Resource Services (hrservices@syr.edu or 315.443.4042).
Where is the eligible program area?
I’m interested in a home just outside of the program boundaries. Can I receive a waiver or exemption for that home?
- No. Both the University-Area Home Ownership Program and Guaranteed Mortgage Program have predetermined boundary maps and any homes outside this area will not qualify for either program.
When should I contact the Real Estate Office about my interest in the program?
- Anytime! You are not required to contact the Real Estate Office before submitting your application, but you are encouraged to reach out if you have a question. Please contact the Real Estate Office via phone (315.443.2104) or email (realestate@syr.edu).
What happens if I buy a home in the program and then leave Syracuse University employment or if the home is no longer my primary residence?
You will not be able to maintain participation in the program. You should notify the Real Estate Office (realestate@syr.edu) of your change in status and then you must either pay off, refinance, or sell the home.
If I purchase a two-family home, can I live in one unit and rent the other?
- Yes! As long as one of the units is your primary residence, you can rent the second unit and still participate in the program.
I’m an incoming employee. When am I eligible to purchase a home through this program?
- New faculty hires are eligible upon receiving an appointment letter from their Dean’s Office.
- New staff hires are eligible from their first day of employment.
University-Area Home Ownership Program FAQs
What does the process for UHOP typically look like?
- Apply for a mortgage from Solvay Bank and receive pre-approval
- Find a home in the program area, submit a purchase offer, and have that offer accepted
- Submit an application to the Real Estate Office.
- Once the application is fully approved, the University’s Real Estate Office will provide a welcome letter detailing your next steps
- Provide Solvay Bank with the letter from the Real Estate Office in order to finalize the mortgage approval process
- Schedule closing
Optional: Within one year of closing, participants should engage a contractor to complete qualified home improvements
- If this option is pursued, participants should submit the contractor invoice to Solvay Bank to receive a two-party check to pay the contractor for the qualified home improvements (both the homeowner and the contractor will sign the check).
Can I place a down payment on the home?
- Participants can choose to make a down payment or finance up to 100% of the purchase price of the home.
Do I have to pay Primary Mortgage Insurance (PMI) through this program?
- Because the University guarantees the mortgage loan, private mortgage insurance is not required.
How does the forgivable home improvement loan work?
- Participants in UHOP have up to 12 months after closing on their mortgage loan with Solvay Bank to apply for a 10-year home improvement loan. The amount of the home improvement loan can be up to 10% of the purchase price of the home (up to a maximum of $15,000). Throughout the life of the loan, the participant is responsible for paying the monthly interest on the loan. At the end of the sixth year of the home improvement loan, 20% of the loan is forgiven by Syracuse University. Twenty percent is forgiven each year thereafter until the loan is fully forgiven at the end of the tenth year. If a participant is no longer a qualified participant (see “Who is eligible for UHOP and the GMP?” above) at any point before the end of the loan’s tenth year, they will be responsible for paying the remaining balance of the home improvement loan.
What home improvements qualify for the forgivable home improvement loan?
- Though subject to change, qualified home improvements include and are limited to the following:
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- Remodeling bathrooms or a kitchen
- Replacing a roof, gutters, and downspouts
- Adding a family room, bedrooms, or bathrooms
- Replacing flooring, tiling, or carpeting
- Completing a basement or attic conversion or adding a second story
- Expanding or building a garage or carport
- Renovating a deteriorating property, such as repairing a chimney, termite damage, or structural problems
- Upgrading plumbing, heating, air conditioning, or electrical wiring
- Eliminating health and safety hazards, such as removing lead-based paint
- Making the home accessible to people with disabilities
- Installing a well or a septic system
- Adding a porch, deck, or patio
- Adding or repairing siding or repainting
- Installing energy-efficient windows or doors
- Repairing an existing swimming pool
How are funds from the home improvement loan released to pay for the improvements?
- The participant and the participant’s contractor will submit a bill(s) or invoice(s) to Solvay Bank. Funds will be issued in the form of a two-party check, which will require the signature of the participant and their contractor.
Can I perform the home improvements myself?
- No. A qualified contractor must be used to perform the home improvements.
Do I have to take out the home improvement loan if I participate in UHOP?
- No. This is an additional program benefit the borrower may choose to utilize, but it is not required.
Can I just take out a home improvement loan without entering into a mortgage loan with Solvay Bank?
- No. To qualify for the home improvement loan, the borrower must have purchased a home and closed on a mortgage loan as part of the University-Area Home Improvement Program offered through Solvay Bank.
What are the tax implications?
- The Internal Revenue Service code treats most forgiveness of debt as taxable income. Therefore, the portion of the loan that is forgiven by Syracuse University each year is considered “taxable” income to you. Syracuse University will withhold the appropriate amount of tax from your earnings. Please consult your tax advisor for further information about how this may impact your pay. The Real Estate Office cannot advise you regarding how much your pay will be reduced because of potential additional tax withholdings during the month in which you receive forgiveness of a portion of your loan.
If I don’t use the full amount of the home improvement loan after my first request, can I request funds multiple times within the 12-month period?
- Funds can only be issued one time. We ask that you take time in your new home to determine which improvements you’d like to complete and have all bills or invoices submitted at the same time.
The cost of my home improvement is more than I’ll receive from the forgivable home improvement loan. Can I still use those funds for home improvement?
- Yes! You will just need to fund the difference between the cost of the improvement and the amount received from the forgivable home improvement loan.
Guaranteed Mortgage Program FAQs
What does the process for the GMP typically look like?
- Apply for a mortgage from one of our three participating lenders (Empower Federal Credit Union, Summit Federal Credit Union, or Tompkins Trust Company) and receive pre-approval
- Find a home in the program area, submit a purchase offer, and have that offer accepted
- Submit an application to the Real Estate Office.
- Once the application is fully approved, the University’s Real Estate Office will provide a welcome letter detailing your next steps
- Provide your lender with the letter from the Real Estate Office in order to finalize the mortgage approval process
- Schedule closing
Can I place a down payment on the home if I choose?
- To participate in this program, you must finance 100% of the purchase price of the home, which means there are no down payments.
Do I have to pay PMI (Primary Mortgage Insurance) through this program?
- The University’s guarantee eliminates PMI.
What is the “guarantee” in this program?
- The guarantee allows participants to buy a home with no down payment and without paying Primary Mortgage Insurance. Participants are not guaranteed a mortgage through this program if they cannot qualify for a mortgage on their own.