Home Purchase Program for employees of Cleveland Clinic, University Hospitals, Case Western Reserve University, Cleveland Museum of Art and Judson at University Circle.

The GCL home purchase program is a $10,000 forgivable loan (or $15,000 loan for working households*) that will be used for down payment and/or closing costs associated with the purchase of an owner-occupied residential property in the Greater University Circle Area. The GCL loan will be forgiven if the employee continues to work for their employer and continues to occupy the residence for 60 months (five years) after the GCL loan has closed. All GCL loans will be secured and will carry an interest rate of 0%. *Judson at University Circle’s home purchase program is a $5,000 forgivable loan.

Employee Requirements

• Employee must be a current employee who meets eligibility requirements (please see your employer’s website or contact your benefits/human resources department for a definition of an eligible employee). Each employer has different eligibility requirements.
• Employee must occupy the home that is purchased and the purchased home must be used as a primary residence by the purchasing employee. Vacation homes, second homes and re-financings are NOT permitted.
• If the employee re-finances the first mortgage loan before the 5 year term of the GCL loan has expired then the employee must repay the un-forgiven balance of the GCL loan.
• Home purchased cannot be a gift.
• All home buyers must complete approved pre-purchase/ budget counseling classes provided by or approved by FRDC.
• This program can only be used once. Employees cannot receive more than one forgivable loan.
• The program can only be used by one family member per household.
• The employee must provide at least 3% of the total purchase price toward the home purchase to be eligible for the GCL program.
• Participating employees who do not comply fully with the rules for eligibility or participation will be required to repay in whole or in part the loan.
• Program funds are provided on a first-come, first-serve basis after all required documentation has been submitted and funding under the options in the program is dependent upon available funding for GCL.

(*Working households are defined as a household whose annual income is $150,000 or less.)

Home Eligibility Requirements

• Home must be located in the designated GCL target area (See Map).
• One or two-family units and condominiums/townhomes are permitted. Multi family (three units or more) properties are NOT permitted.
• Home must meet existing city code requirements.
• If existing homes requiring rehabilitation are purchased (foreclosed homes, etc.) sums must be set aside at the loan closing in amounts sufficient to complete those renovations necessary in order to meet code requirements. Renovation must be completed in 12 months.
• The purchase price of the home must not exceed the fair market value of the property.
• The employee must present a purchase agreement for the home and proof of insurance for the property.

Employee Application Process

Loan Forgiveness

The GCL loan is a five-year loan that bears no interest. The process of the GCL loan may only be used for down-payment, closing costs or mortgage points associated with the purchase of a primary residence in the designated area.

As long as an employee remains employed and continues to occupy the purchased property as a primary residence, a portion of the original principal amount will be forgiven annually on the anniversary of the loan closing date as described below.

Events that trigger non-forgiveness: (any one of these events will trigger non-forgiveness)

1. Selling, refinancing or vacating of the home prior to the end of the GCL loan period.
2. If the employee no longer occupies the property as his/her primary residence.
3. The employee ceases to be an eligible employee as defined by their employer.
4. The making of any inaccurate, false or misleading statements in connection with obtaining the GCL loan.

If the sale or transfer of the home, ceasing to occupy the home or termination of eligible employment occurs prior to the anniversary date, the employee will not receive forgiveness in that year. Please note that a lien will be placed on the property until the full amount of the loan is forgiven. Employees will be notified annually of the amount of loan forgiveness and what amount, if any, would become due should they trigger a nonforgiveness event.