Ready to Renovate a House?
The Pittsburgh Land Bank’s Pilot Residential Rehab Program lists for sale homes in need of renovation to qualified buyers who intend to occupy the house as their primary residence once renovations are complete. Buyers will need to demonstrate that they are ready to take on a significant rehab project.
APPLICATION CHECKLIST:
- Complete a tour of the house before submitting an application
- Provide proof of financing to cover the cost of purchasing and rehabilitating the home
- Provide an approved rehab plan for the complete rehabilitation of the home
- Pass the Land Bank’s Qualified Buyer Check (be up to date on all taxes and water bills, no open property violations)
- A deed restriction will be placed on all properties, requiring buyers to own and occupy the home for five years post-renovation
The Land Bank will also take the following factors into account when selecting a buyer:
- Having an identified Contractor
- Demonstrating a clear intention to own and occupy the home
- Feedback from existing neighborhood residents and/or community plan (where applicable)
- Buyer’s home rehabilitation and/or construction experience, if any
Scheduling a Tour
If you are working with a realtor, have your realtor contact the listing agent to schedule a tour.
Otherwise, visit the property’s info page on the Land Bank’s website for contact information, or schedule a tour via the website where the property is listed (like zillow).
Please sign and submit a hold harmless form before visiting the property.
Visit the property’s info page on the Land Bank’s website, for contact information to schedule a tour of the property.
Buyer Requirements - "Qualified Buyer Check"
To purchase a house from the Land Bank, buyers cannot own property that:
- Has any un-remediated property code violations
- Is tax delinquent
- Was subject to a judgment in a tax foreclosure proceeding in the past five (5) years
- Has a delinquent water account with the City of Pittsburgh’s Water and Sewer Authority, or any other local water utility
Financial Resources for Buyers
The following are acceptable forms to demonstrate proof of funding immediately available to purchase and renovate the property:
- Bank statements
- Pre-approval letter from Lender
- Lines of credit
- A bank statement from a family member/friend (along with a letter detailing approval of applicant’s use)
- Proof of funds letter from Bank
- Other forms of proof of funding are accepted on a case-by-case basis
MORTGAGE REHAB LOANS
The Pittsburgh Land Bank will give preference to buyers using a Mortgage-Rehab loan product. The Land Bank recommends that all interested buyers research the loan programs that may be available to them to see which programs best suit their needs. You can review the below contact information for banks that offer this type of programming.
S&T Bank
David McGowan
412-915-7997
DavidMcGowan@s&tbank.com
WesBanco
Don Wargo
412-902-3127
dwargo@wesbanco.com
Dollar Bank
Steve Kaminski
412-261-4219
SKaminski205@dollarbank.com
Slovak Savings and Loan (SSB)
Heather Dieckmann
412-837-6955
hdieckmann@ssbpgh.com
How does the Land Bank ensure that buyers will successfully rehab homes?
The Land Bank will use one of the below post-closing requirements to ensure that buyers can successfully rehabilitate a home. Click on each option below to read more.
At closing, the Land Bank can place an Enforcement Mortgage and Note on the home to ensure that buyers will follow through with the rehabilitation work. All applicants that may receive funding from a bank, credit union or other type of lender are recommended to provide a copy of the Enforcement Mortgage and Note for pre-approval. In certain circumstances, the Land Bank is willing to place this mortgage in secondary position should a buyer not be able to receive traditional funding.
A Reverter Deed-in-Escrow allows a qualified buyer to purchase a home for a modest price and agree to make certain renovations to the home within a set amount of time (typically six months). If the buyer does not complete the renovation, then the Land Bank can record a Reverter Deed to return the property to its ownership.
Land Bank Staff work collaboratively with buyers to agree on a realistic written renovation plan to make the home safe and habitable per local code and building standards. In certain circumstances, Land Bank Staff may approve an extension to the time needed to renovate the home on a case-by-case basis.
A Deed-in-Escrow allows a qualified buyer to purchase a home for a modest price and agree to make certain renovations to the home within a set amount of time (typically six months) while the property remains in Land Bank ownership.
All costs associated with materials and supplies, labor, etc. are the responsibility of the buyer. The buyer must also pull all necessary permits and obtain the necessary zoning approvals.
Upon completion, the Land Bank will release the Deed from escrow allowing title to be fully vested in the owner’s name.
In some cases, the Land Bank may use Deed Restrictions to further ensure that homes will be lived in by qualified owner-occupants for a certain number of years.
A Deed Restriction is a clause on the home’s deed that limits the use of the property.
What does closing with the Land Bank look like?
CLOSING CHECKLIST
(Estimated Timeline: 1 to 3 Months)
- Buyer and/or Buyer’s Contractor shall submit proof of application for a building permit.
- Due when the Purchase and Sales Agreement is signed:
- Good Faith Deposit (3% of the Purchase Price or $1,000 – whichever is greater).
- The deposit will be applied to the Purchase Price at closing.
- Good Faith Deposit (3% of the Purchase Price or $1,000 – whichever is greater).
- Buyer selects a Title Company to handle the sale. Please connect the Title Company and Land Bank staff via email.
- Approved buyer have the right to select a closing company of their choosing, however, due to the unique nature of purchasing a Land Bank property all applicants are recommended to use the Land Bank’s preferred closing companies to ensure a smooth and efficient sale.
- Buyer will receive a draft Purchase and Sale Agreement, Special Warranty Deed, and select either an Enforcement Mortgage, Deed-in-Escrow, or Reverter Deed-in-Escrow. Buyer will review and approve all documents prior to sale.
- Buyer and Seller will select a closing date and coordinate with a Title Company.
- Buyer will pay all Closing Costs.
- Congratulations! You’ve successfully purchased property from the Pittsburgh Land Bank.
Ready to get started? Applications are live for Land Bank Homes!
