Urban Redevelopment Authority of Pittsburgh
Consumer Home Financing
Consumer FAQs
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Click on a question to jump to the answer:
- Do I need perfect credit to get a URA loan?
- Do I have to live in the property to be eligible for a URA home loan?
- Can I get a loan for a property located outside the City of Pittsburgh?
- What is a deferred loan?
- Do you have grant money to help me fix-up or buy a home?
- If I have delinquent City and School real estate taxes, can I get a URA home improvement loan?
- Can I complete the repairs to the property myself?
- How does a contractor become URA approved?
- Who selects the contractor?
- Can I use more than one contractor?
- What programs do you have to make the home accessible to people with disabilities?
- Can I make any type of repairs to the home that I want to with a URA home improvement loan?
- Are there other resources that you can tell me about for home repair loans?
- What's so special about a URA mortgage?
- How much down payment and closing cost grant money can I get?
- Do I have to be a first time homebuyer to qualify for a PHOP mortgage?
- How do you define a first time homebuyer?
- How do I lock in my mortgage interest rate?
- Am I required to take a Homebuyer Education class?
- Do I need to take the Homebuyer Education Class before I sign a purchase contract?
- Is there a particular agency that I must use for these classes?
- How long does it take to get a URA mortgage?
- Is there a prepayment penalty for the mortgage products?
- What is the Recapture Tax?
Do I need perfect credit to get a URA loan?
Your credit needs to be acceptable by a lender. The credit criteria varies by program so it will be evaluated in accordance with each program's guidelines. If your credit is not in good shape, you should enroll in a credit counseling program so that you can become mortgage ready. Contact one of the credit counseling agencies in the Pittsburgh area.Do I have to live in the property to be eligible for a URA home loan?
Yes, the owner of the property must occupy the home as their principal place of residence, except for the Pittsburgh Party Wall Program. In that program, the owner does not have to live in the property but the tenant must be income eligible. In the other consumer home programs, the property can have as many as 4 residential units provided that the owner occupies one of the units. For information on loans for investor owned rental properties, see Multi-Family Residential Development.Can I get a loan for a property located outside the City of Pittsburgh?
The URA only provides funding for properties located within the City of Pittsburgh. If your property is located outside the city but within Allegheny County, contact the Redevelopment Authority of Allegheny County at 412-350-1000 and ask about their loan programs.What is a deferred loan?
The URA provides 0%, deferred mortgages and loans in some of the programs. This means that the loan bears no interest and there is no monthly payment of the principal of the loan. The principal amount of the loan is not repaid until sale or transfer.Do you have grant money to help me fix-up or buy a home?
Grants are available to borrowers in the PHRP program but only if they also get a loan. In other words, you cannot just apply for the grant money independent of the loan. The grants are available to partially cover the cost of sidewalk repair, exterior improvements, accessibility modifications and lead hazard repair. Borrowers in the HRP program can also get a grant for the lead hazard repair costs but, again, only in conjunction with the HRP mortgage.If I have delinquent City and School real estate taxes, can I get a URA home improvement loan?
No, your real estate taxes for the City of Pittsburgh and Pittsburgh School District must be current. However, if you are on a payment plan with the City and School for the delinquent taxes, we will consider your application. To get on a payment plan, contact the City Real Estate Office at 412-255-2525.Can I complete the repairs to the property myself?
In all but the HILP loan program, you must use a general contractor that is approved by the URA.How does a contractor become URA approved?
To be approved, the contractor must, at a minimum, be certified to do lead abatement work, carry adequate insurance and have adequate lines of credit. The contractor should call 412-255-6580 for an application.Who selects the contractor?
The homeowner selects the contractor and enters into a contract with the contractor for the work that has been approved by the URA. If you do not have a contractor, the URA will publicly bid the work to three contractors who have been approved by the URA, and then you select the contractor from those that have responded.Can I use more than one contractor?
The URA requires that you use one general contractor to complete the repairs. However, should circumstances warrant a second contractor, we will consider it.What programs do you have to make the home accessible to people with disabilities?
You can use any of the home improvement products (PHRP, HILP, HRP) to make accessibility modification to the home; however, if the home has any delinquent safety code issues or lead hazards, those items will have to be addressed as well. In the PHRP program, a homeowner can receive up to $3,000 in grant funds to make the home accessible. The URA also administers the HAPI program, which provides 0% loan or a grant of up to $5,000 depending on your income to make the home accessible.Can I make any type of repairs to the home that I want to with a URA home improvement loan?
The proceeds of the URA loan must be used to first address any delinquent building safety code items and lead hazards. After that, the loan can be used for any type of general property repairs or upgrades.Are there other resources that you can tell me about for home repair loans?
Yes, there are other agencies that provide assistance for home repair loans and grants to Pittsburgh area residents. See Home Repair Resources for City of Pittsburgh Homeowners. You will need Adobe Acrobat (free download) to view and print this document.What's so special about a URA mortgage?
The URA offers a 30 year fixed rate mortgage loan with below-market interest rates, very low down payment options and down payment/closing cost assistance grant that is available to qualified borrowers.How much down payment and closing cost grant money can I get?
Qualified buyers can receive up to $3,000.Do I have to be a first time homebuyer to qualify for a PHOP mortgage?
No, if the property that you are buying is located in a "Target Area" then you do not have to be a first time homebuyer. If you are buying in a "Program Area", then yes, you do need to be a first time homebuyer. View this PHOP map for target and program areas.How do you define a first time homebuyer?
Anyone who has never owned a home, or who has not owned a home for the 3 year period prior to closing.How do I lock in my mortgage interest rate?
Participating lenders reserve the funds for your loan, essentially locking your interest rates at that time.Am I required to take a Homebuyer Education class?
Yes, if you are using a Fannie Mae PHOP product, or you are a first time homebuyer who is receiving the down payment and closing cost assistance grant.Do I need to take the Homebuyer Education Class before I sign a purchase contract?
No, however, you must complete the Homebuyer Education Classes before closing the loan.Is there a particular agency that I must use for these classes?
If you are using the Fannie Mae PHOP products, you must use Fannie Mae's approved agency, Neighborhood Housing Services, Inc., 412-281-9773. Otherwise, you can choose any certified housing counseling agency.How long does it take to get a URA mortgage?
Provided you have supplied the participating lender with all the information they requested, it should not take much longer to get a URA mortgage than it would to get a non-URA mortgage. However, you will be required to provide information that you may not ordinarily be requested with a non-URA mortgage, such as copies of the past 3 years tax returns.Is there a prepayment penalty for the mortgage products?
No, there is no prepayment penalty on the PHOP or HRP mortgage products. However, some borrowers may be subject to a Recapture Tax if they sell their home within nine years of the original closing date.What is the Recapture Tax?
Some of the mortgage loan programs provided by the URA are funded with the proceeds of tax-exempt Mortgage Revenue Bonds - PHOP and HRP. Borrowers who use these programs could be subject to a Federal Recapture Tax on those benefits if and when they sell their home. The Recapture Tax is part of the Federal tax code and is collected by the IRS; it is not paid to nor regulated by the URA. The Recapture Tax is part of the Federal income tax liability for the year in which the home is sold. It does not directly affect the sale proceeds.See this 2-page brochure About Recapture Tax to learn more about the Recapture Tax and how it may apply to you. You will need Adobe Acrobat (free download) to view and print this document.