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Urban Redevelopment Authority of Pittsburgh
Consumer Home Financing

Housing Recovery Program (HRP):
How Does it Work?

Summary of the Process for HRP

The HRP program is a process that takes place over time, the length of which depends on a number of factors. Below is a summary of the process.

  1. First, get pre-approved for a mortgage by one of the participating HRP lenders who will tell you the maximum amount of first mortgage that you can borrow. This will help you in your home selection process.
  2. After you select a property to purchase, complete the application and send it along with the signed sales agreement to the lender for pre-qualification. Based on the location of the property, the lender will be able to tell you if you qualify for a 0% deferred second mortgage.
  3. The lender sends the loan package to the URA to determine the scope and costs of renovation work along with the amount of the 0% deferred second mortgage. All building code violations and lead based paint hazards must be corrected within the scope of work. If you do not have a contractor, the URA will work with you to select a contractor by bidding out the scope of work on your behalf.

    Please note that all contractors must be approved by the URA and must be certified to do lead based paint abatement. If you have a contractor who is not currently approved by the URA, please have them contact the URA at 412-255-6580 for an application.

  4. After the renovation costs are finalized, the URA will determine the amount of 0% deferred second mortgage funding and return the package to the lender for final loan commitment.
  5. The lender orders an appraisal, completes underwriting and then offers a commitment for the first mortgage.
  6. The URA then issues a commitment letter for the 0% deferred second mortgage funding.
  7. The loan closes and the funding for the renovation work is escrowed with the lender for disbursement.
  8. Construction begins. The contractor is paid in stages by the lender as the work is completed based upon your approval of the work. The URA will inspect the work to determine the amount of work completed. Final payment is made only after all permits and lead clearance are received.
  9. Your first loan payment will not be due for a minimum of 90 days after you close the loan.
For more information about the program, call one of the participating lenders or contact the URA Program Officer, Alicia Majors, at 412-255-6698 or amajors@ura.org.