Faculty Housing Programs - Mortgage Origination Program (MOP)

Mortgage Origination Program (MOP)

This program provides first deed of trust mortgages to eligible faculty and senior management to assist them in the purchase of a principal residence near UCSD. It is managed by the UC Office of Loan Programs in the Office of the President.

Basic Program Eligibility (per UC Office of the President Policy)

Members of the Academic Senate; or
Acting Assistant Professors; or
Senior Management Group (SMG) Employees

Additional UCSD Eligibility Requirements

Health Sciences Faculty only - please visit the MOP loan Health Sciences Website
General Campus Faculty
- Ladder-rank faculty appointments on general campus
- Two years from the date of arrival on campus:
  - Faculty Start Date of July 1st - MOP Eligibility Ends September 30th
  - Faculty Start Date of January 1st – MOP Eligibility Ends December 31st
- For assistant professors, an additional year of eligibility is granted upon tenure if the faculty member has not previously made use of a MOP loan.
- Standard MOP loan allowance is $600,000
- Contact Linda Thai, UCSD Home Loan Coordinator, for additional information

Faculty who have accepted their offers may begin the pre-approval process prior to their start date, however, loan will not be approved prior to ninety (180) days before official start date. Pre-approvals are effective for sixty (60) days.

Loan Term: All loans are fully amortized with terms up to forty (40) years.

Loan Type: Currently there are two loan options available. They charge no points, lender fees or private mortgage insurance.

1. Mortgage Origination Program (MOP): The program provides first deed of trust variable rate loans with up to 40-year terms at maximum amounts of 85% to 90% of value, depending upon loan size. The maximum annual adjustment of the interest rate for a loan, upwards or downwards, is one percent. Eligibility for MOP participation is generally restricted to qualified applicants who are purchasing a home in the campus area for the first time. More details can be found in the Program brochure.

2. Interest-Only Mortgage Origination Program (IO-MOP): The IO-MOP loan features interest-only payments for a specified period of time (IO-Period). During the IO-Period, the monthly payments due are based on the interest-only rate (IO-MOP Rate) which is equal to the MOP Standard Interest Rate, plus an additional fee component of .25%. After the IO-Period, the interest rate will be the then-current Standard Rate, without the added .25% fee component, and the principal balance of the loan will be fully amortized over the remaining term of the loan resulting in a principal and interest monthly payment. Although the maximum overall loan term is 40 years, an IO-MOP loan must have a minimum 30-year amortization period remaining after the IO-Period ends. More details can be found in the IO-MOP brochure.

Interest Rate: The MOP interest rate (Standard Rate) changes quarterly based on the recently available four-quarter average of the University’s Short-term Investment Pool (STIP) index plus an administrative fee of 0.25%. The borrower’s interest rate changes annually on the anniversary date of their loan (up or down to a maximum of 1% annually). MOP Interest Rate Information

Additional Important Information:

Property must be owner-occupied and must be a single-family residence (including condominiums and units within planned unit developments).
Property must be the participant’s principal place of residence.
Property must be used primarily for residential non-income producing purposes.
Property must be 50% or more participant owned.
Participation is limited to individuals who have not owned a principal place of residence within a reasonable distance of campus within twelve (12) months.

Payments: Monthly payments are made through payroll deduction. The loan must be paid in full six months after separation from the University, unless separation is due to retirement or disability.

Prepayment: MOP loans carry no prepayment penalties.

UC Office of Loan Program Links

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