Office of Loan Programs
FAQs about new UC home loans
The collection of documentation needed for the review, approval and funding of a new UC home loan application is often referred to as the loan origination process.
Over the past twenty years of originating MOP loans here at OLP, we have been asked many questions about the loan process by borrowers like yourself. For your convenience, we have compiled a list of our most frequently asked questions and answers and divided them into five categories as listed below.
- I am a UC employee and would like a MOP loan. Am I eligible?
Eligible participants of MOP are members of the Academic Senate (or those who hold an equivalent title) and members of the Senior Management Group. For further information, please contact your campus home loan coordinator.
- My offer letter states that I am eligible to participate in MOP. How do I begin the loan process?
Once you have been nominated to participate in MOP, the next step would be to contact your campus home loan coordinator to review the Program guidelines and qualification criteria. Eligibility to participate does not constitute loan approval; you will need to complete a standard mortgage loan application so that the Office of Loan Programs can process your loan. Your home loan coordinator will provide you with access to the online application forms and a list of other supporting documentation that is necessary for the processing and final approval of your loan. See How to Receive a UC Home Loan (pdf) for more information.
- I have not yet applied for a MOP loan. Whom do I contact for general information and questions regarding your services?
- Can I finance 100% of my purchase price with a MOP loan?
100% financing is not available with a MOP loan. MOP loans can provide financing of up to 90% of the lesser of the purchase price or appraised value for loan amounts up to $1,330,000*. For loans greater than $1,330,000*, the maximum financing percentage, or Loan-to-Value (LTV) ratio, is 80%.
*MOP loans in excess of $1,330,000 require additional campus and systemwide approvals.
- Is there any cost to apply?
The University does not charge any points or lender fees to loan applicants. You will be responsible, however, for closing costs associated with your loan, which typically include the appraisal fee, fees for any inspections you have done, escrow and/or title fees, and other miscellaneous fees including overnight delivery, recording and notary fees, etc.
- How do I determine how much I can afford to borrow?
Our MOP-Qualifying Calculator is an easy-to-use tool for estimating your buying power. Please note, however, that the actual amount of your MOP loan allocation is determined by your campus.
- Will you check my credit once I complete the loan application?
Yes. One of the forms that you will sign when applying for a loan authorizes us to order a credit report. A credit report allows us to gain an accurate financial profile quickly.
- What documents will I need to provide with my application?
Our streamlined loan process minimizes the number of documents that you are required to provide. Our Application Checklist (available from your home loan coordinator) will provide you with a list of required documentation to begin processing your loan.
- What criteria do you use to evaluate my loan application?
Based on the information you submit in your application, we complete an analysis of your financial situation, including calculating income-to-debt qualifying ratios, reviewing your credit history and outstanding liabilities, employment history, current income, availability of assets for the downpayment, including closing costs, and your financial reserves.
- Can I apply for a loan if I have filed for bankruptcy?
Applicants who have filed bankruptcy will be required to detail the reasons for the filing and demonstrate their reestablishment of credit. Any bankruptcy filing must be satisfied prior to loan approval.
- Should I get pre-approved before I start looking for a home?
A pre-approval helps put your buying power in perspective, even before you find a property. A pre-approval also lets others involved in the home buying process know that you are financially qualified to purchase a home and is an excellent tool for negotiating with sellers. In fact, many realtors require borrowers to "pre-qualify" before they will even begin working with them. Most homebuyers feel that a pre-approval letter gives them greater flexibility and leverage while shopping for a home.
- What's the difference between getting pre-approved and applying for a mortgage?
A pre-approval indicates that a lender has determined you are financially qualified for a loan. Applying for a mortgage loan will determine if you, and the house you would like to buy, meet the lender’s standards.
- I was recently pre-approved and would like to make an offer. How long of an escrow period should I negotiate?
In general, you should allow thirty days from the date your offer is accepted until the close of escrow. This will allow adequate time for the appraisal as well as various inspections to take place. In certain instances, however, it may be possible to close your loan in less than thirty days.
- Who will provide me with an update on my loan status?
Once the Office of Loan Programs has reviewed your completed application and supporting documentation, your OLP loan underwriter will keep you updated on the status of your loan.
- I won’t start work at UC for several months. How soon can I close escrow?
Our Program requires that you close escrow no more than 180 days before your appointment date.
- The property I would like to purchase has Section 1 termite work. Do these items have to be repaired?
In general, yes. Prior to the close of escrow, we typically require a copy of the bid to repair these items. The funds for the Section 1 items are typically “held back”, or retained, by the escrow company until the work is completed and a final Notice of Completion is received by the Office of Loan Programs. All required repairs must be completed within 60 days after closing.
- When will I know the exact amount of money I will need at closing?
A representative from the settlement agent office (typically an escrow or title company) will notify you at least 48 to 72 hours before your loan closing regarding the exact amount of funds needed to close the transaction and the acceptable payment method. In general, the funds you bring to closing must be in a certified form, such as a certified check made payable to the settlement agent office, or a wire transmittal.
- What happens at the Loan closing?
The closing will take place at the escrow or title company office. However, prior to closing, you will be reviewing and signing several loan documents, including the Promissory Note and Deed of Trust. The closing is finalized upon recordation of the Deed of Trust at the County Recorder’s Office.
- What fees are typically included in closing costs?
Closing costs are expenses over and above the price of the property. Closing costs include all escrow and title insurance fees, property taxes, city transfer taxes (if any), prepaid hazard insurance, prepaid interest due, other miscellaneous fees including, but not limited to, overnight delivery, recording, notary fees and loan-related charges (appraisal, credit, tax service, flood certification fees). Closing costs usually amount to between 2 and 4 percent of your loan amount.