Photo credit: Mark Stehle
Before homebuyers begin looking for a house in West Philadelphia, Oluwatoyin Adegbite-Moore says they should pay her a visit.
As Director of Penn Home Ownership Services, Moore helps faculty and staff understand the labyrinthine process of buying a home and advises them how to take advantage of all of the ways Penn can help make that dream a reality.
Penn does this in a couple of ways: the Enhanced Mortgage Program is a $7,500 forgivable loan that can be used for closing costs, a down payment or for home improvements, while the Guaranteed Mortgage Program enables faculty and staff to borrow 105 percent of the purchase price of their home or 120 percent, in the case of rehab purchases. The goal is to encourage faculty and staff to buy homes in West Philadelphia as a way of investing in the community and strengthening ties between the University and the neighborhood.
“People feel that this program has really made a difference for them,” she says. “It’s an opportunity for them to own something that’s theirs and pass that along within their family and continue to achieve that dream—whatever it is for them.”
Q. What does your office do?
A. The work is focused on helping faculty and staff to get the right financing and the resources that they need to become homeowners in West Philadelphia. The work of the office is twofold—it’s providing the opportunity to faculty and staff but it’s also helping to revitalize West Philadelphia. The more home ownership you have in a community, the safer, the better the community becomes and of course, the real estate improves in value.
Q. What are some typical questions people ask you?
A. It could be from, ‘My credit score is X—would I be able to buy the house?’ to, ‘We’re just really interested in buying something around X amount. Can we afford it?’ It really varies and we try as best as possible to explain both programs.
Q. What is the history of these programs?
A. The focus of this office really kind of built upon work that dates back to 1965, when Penn really started to look at itself as a neighbor in West Philadelphia and look for ways to have faculty and staff benefit by walking to work and being close to their job and being part of the University life. [In 1965], the housing market in West Philadelphia was kind of at rock bottom—there was a lot of crime that was bringing down the real estate value. The Guaranteed Mortgage Program and the Enhanced Mortgage Program kind of got another life in the 90’s as part of an opportunity to reinvigorate the community.
Q. Right now, what’s the average home price in the neighborhood?
A. Close to the University, I would say right now, it’s around $250,000. Within 30th Street to 52nd Street, you can find houses for $80,000 or even $75,000, but there are very few. Beyond 52nd street, there at more houses that are around $75,000 up to $120,000, maybe $125,000. However, one of the key things that we also are aware of is again, whether or not they need a lot of rehab work. Those houses that are in the 70s and 80s most likely need some more work in terms of getting them to be livable.
Q. Why has Penn made the program so comprehensive?
A. The destiny of the community and the school is very much intertwined. You barely see where the boundaries of the University begin and stop. I think it’s very important that people know that there are a lot of people who work for Penn that live very close by and some are renting and some own. Since I’ve been here, someone who was renting had the opportunity to turn that rent into a home. They talked to their landlord, and said, ‘I could buy a house through the University, are you willing to sell your home?’ and the landlord said ‘Sure, I’ll [sell] it to you.’ So, that’s probably one of our success stories since I’ve been here.
Q. Do you have any advice for the first time homeowner who is getting ready to buy?
A. The very first thing they have to do is come and visit us. At the end of the day, there is a house out there for everyone. If you are really looking to buy a house, you will find something that suits you and your family and your budget. We want it to be affordable. If your credit is decent and good enough to buy a home, then we encourage you to talk to our three lenders and see what they can give you in terms of interest rates and different services that will suit your budget.
Q. How has the mortgage mess affected what you do?
A. We’re at the point that we’re wrestling with the issue of affordability. Just recently, we heard [housing prices] went down by about 2 to 3 percent, which would mirror what’s going on around the country, but the Philadelphia market as a whole has really been very stable. Given that, people do not have to be afraid of what’s going on at the national level. The loans that they would be able to access through our office are very conservative, mainstream-type loans that are Fannie Mae-approved. We do not support any of those creative types of financing. What really matters is to make sure that faculty and staff make the right decisions. We all don’t have similar budgets, we all don’t have similar incomes. It’s very important that people look at what it is they can afford as opposed to what it is they want to afford.
Originally published Jan. 10, 2008
