25 Pa. Code § 14.14 – Loan agreements.

(a) Loans awarded to eligible homeowners will be administered by the Department of Environmental Resources and shall be:
1. (1) Limited to 15 years in duration.
2. (2) Payable in monthly installments.
3. (3) Collectible immediately upon default.
4. (4) Secured by a lien upon the dwelling being repaired or replaced.
(b) The loan agreement shall provide that the loan will be in default if the recipient fails to present the Department of Environmental Resources with proof that the loan was applied to the cost of repairing the dwelling within 12 months of its receipt.
(c) Upon being advised that a loan has been awarded, the eligible homeowner shall provide the Department of Environmental Resources with an encumbrance abstract, listing liens, mortgages or other encumbrances recorded against the property on which the dwelling is located and an appraisal of the current market value of the property. If the abstract and appraisal reveal that the property has equity equal to at least 50% of the loan, then the Department will provide the eligible homeowner with forms for a mortgage, bond and warrant. Upon execution of these forms, the mortgage shall be recorded, and the attorney of the homeowner shall certify to the Department both the fact of recording and the priority ranking of the lien. When the Department receives this certification, it will issue a check to the eligible homeowner in the amount of the loan.