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Benefits

EAHP: FAQs

Q. How do I get an application for this program?
A. Applications are available in the Employee Benefits Office (112 Scovell Hall) or from the UK Employee Benefits website

Q. Who is eligible for this program?
A. Regular full-time faculty at the rank of instructor or assistant professor are eligible immediately upon the receiving an assignment contract for the academic year. Regular full-time staff employees at grade level 46 or below are eligible after completing the 90-day employment orientation period.

Q. I would like to buy a home, but do not have a down payment? Can this program help me with my down payment?
A. Yes, funds from this program can be used for down payment, closing costs, Homeowner Education Program Provider fees, home inspection fees, rehabilitation costs, and renovation costs.

Q. Why do I have to see one of the Homeowner Education Program Providers prior to buying a home?
A. Purchasing a home for the first time can be overwhelming. The Homeowner Education Program Providers will assist the employee in determining a price range and helping first-time buyers understand the added responsibilities of owning a home.

Q. Will I be required to have a home inspection prior to purchase? 
A. Yes, a home inspection will be required.

Q. I have had some credit problems in the past. Can I still participate? 
A. Yes, Homeowner Education Program Providers will assist the employee in overcoming credit related barriers to purchasing a home such as poor credit, high credit card debt, etc. The Homeowner Education Program Provider will also run a credit report on your credit history and review your credit history with you. Employees with barriers to purchasing a home (i.e. poor credit) will be required to attend and complete an educational program with one of the Homeowner Education Program Providers.

Q. To qualify for this program, does the home need to be in a certain area around UK?
A. Yes, a geographical area around UK has been defined. Only homes within the defined geographical area will qualify for this program. Homes outside of the defined geographical area are not eligible.

Q. How do I know if the home I have selected is within the defined UK area?
A. Information regarding specific property eligibility can be found by clicking here.

Q. I see that the defined UK area surrounds the main campus. If I participate in this program, are there any university parking restrictions?
A. An employee in the program who lives within walking distance of his or her work station may be asked to waive eligibility to purchase a UK parking permit. These employees are eligible to receive up to four temporary one-day parking permits per month to facilitate parking on campus as the need arises.

Q. Can I get any additional money to perform repairs, convert to a single family home, or perform any other type of home rehabilitation?
A. Yes, additional funds may be available, but not from the University of Kentucky. Homeowner Education Program Providers (i.e. REACH) assisting the university in this program may be able to offer financial assistance in addition to the university contribution. Additional funds secured from participating Homeowner Education Program Providers will not impact the university contribution.

Q. How long does it take to complete this program and close on a home?
A. The amount of time necessary to complete the program will depend on many factors including credit history, availability of suitable property, etc. Employees with barriers to purchasing a home (i.e. poor credit) will be required to attend and complete an educational program with one of the Homeowner Education Program Providers, thus extending the timeframe necessary to meet the pre-qualification criteria of the lender.

Q. I am a faculty member and will begin my actual work for the university at a future date. Do I qualify?
A. Yes, faculty (instructor or assistant professor) who have signed a contract qualify for this program. A copy of the signed contract must be submitted to the Employee Benefits Office in conjunction with the completed application signed by the Employee Benefits Office, a participating Homeowner Education Program Provider, and a participating Lender. Faculty applications will not be considered to be complete until the completed application and copy of signed contract are submitted.

Q. Are there any additional or hidden fees by the university to use this program?
A. Homeowner Education Program Providers associated with this program will charge fees associated with their services. Normally, payment of these fees is deferred until closing. Fee payment at closing will be counted toward the total university contribution to the employee. 

Q. What is a “forgivable loan”?
A. A “forgivable loan” for purposes of this program is a loan to the employee to assist in purchasing a home in a designated area around the university. The loan amount is based on the purchase price of the home. The loan amount is forgiven at a rate of 20% per year. After five years, the loan is completely forgiven and the employee owes the university nothing.

Q. If I fulfill the requirements of this program, how do I get the university funding? Is the funding mailed to me directly?
A. A representative of the University of Kentucky Employee Benefits Office will be present during your closing and will provide the funds at that time.

Q. Do I have to actually live in the house to be eligible for this program?
A. Yes, this home must be your principal residence. If the residence ceases to be your principal residence, the prorated portion of the loan would be due to the University of Kentucky immediately.

Q. What if I participate in this program and I don’t live in the home for five years?
A. A pro-rated amount of the loan would be due to the University of Kentucky immediately.

Q. Will I be assigned a realtor or can I choose my own? What about a lender?
A. The Homeowner Education Program Provider may suggest a particular realtor. The employee is free to take the suggestion of the Homeowner Education Program Provider or the employee may elect to choose their own realtor. The university does not endorse a single realtor nor make a recommendation regarding realtor selection. Furthermore, employees may select any approved Homeowner Education Program Provider or Lender associated with this program. Additionally, eligible employees may choose any institutional lender. 

Q. Why do I have to submit the completed application to the Employee Benefits Office five days prior to closing?
A. Five days are normally necessary to issue a check. Submitting the completed application less than five days prior to closing may not allow ample time to issue a check. This type of delay could severely impact your closing date.

Q. If my home is located in the defined UK area, can I refinance my existing home and use the funds in this program to cover closing costs, renovation, etc.?
A. No, the benefits of this program cannot be applied to existing mortgages or refinancing.

Q. If my current home is located in the defined UK area and I have an existing mortgage, can I use the funds from this program to cover renovation costs, etc.?
A. No, the benefits of this program cannot be applied to existing mortgages or refinancing.

Q. Are there any conditions in which the university would forgive the loan at an accelerated rate?
A. Upon the death of a participating employee, the full loan amount is forgiven.

Q. Is there any circumstance in which an employee may receive less than 5% of the purchase price?
A. Yes, the Employer Assisted Housing Program is funded by the University of Kentucky. The provisions described in this document may be limited by available funding.

Q. Will the value of my assets impact my eligibility?
A. The normal asset limit for employees to participate in this program is $60,000. These assets include real property or equity in real property, stocks, bonds, certificates of deposit, shares in mutual funds, cash, etc. Assets excluded from this limit include personal vehicles and tax deferred retirement funds {403(b), 401(k), IRAs, etc.}. Employees with assets totaling more than $60,000 may request a waiver from the Executive Vice President for Finance and Administration. If the employee is found to have assets exceeding the maximum amount of $60,000 at any point in the application process, the employee will deemed ineligible.

Q. If I violate a program provision, am I eligible to participate at a later date?
A. An employee that violates a provision of this program is ineligible to participate for five years from the date of violation.

Q. If I am interesting in purchasing a home through this program in conjunction with another UK employee, is there anything I need to know?
A. In the event a home is purchased in conjunction with one or more employees of the University of Kentucky, the maximum combined benefit will be limited to 5% of the purchase price up to a maximum of $15,000. It is the intent of this program to provide forgivable loans of 5% of the purchase price up to a maximum amount of $15,000 regardless of the number of UK employees involved.

Q. Can I have more than one principal residence and, thus, be eligible for additional loans?
A. No, you cannot have more than one principal residence. There is also a limit of one active loan per employee or household.

Q. Is this a taxable benefit?
A. Yes, this is a taxable benefit. Employees receiving benefits under this program will be required to pay applicable taxes.