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 thirty 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.
Program eligibility
- 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 OLP with your confirmed eligibility and the OLP will send you an email invite to begin the online application process. See Overview of the loan process for more information.
Before you apply
- I have not yet applied for a MOP loan. Who do I contact for general information and questions regarding your services?
Please contact your campus home loan coordinator for information concerning the Mortgage Origination Program (MOP).
- Can I finance 100% of my purchase price with a MOP loan?
No, MOP allows up to 90% financing based on the lesser of the purchase price or appraised value for loan amounts up to the max indexed threshold ($2,370,000* as of March 1, 2022).
*MOP loans greater than the max indexed threshold amount amount require additional campus and system wide approvals and are limited to 80% maximum financing.
- 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 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. After you have submitted your loan application through our online portal, our office will order a 3-bureau credit report for each borrower on the loan. A credit report allows us to gain an accurate financial profile quickly and is required as part of the pre-approval process.
- What documents will I need to provide with my application?
Our Application Checklist (available from your home loan coordinator) will provide you with a list of the required supporting documents you will be asked to provide. After your online application is submitted, you will be given instructions on when and how to upload your supporting documents through the online portal.
- 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 debt-to-income 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. If you are not a U.S. Citizen, we will need to review documentation pertaining to your current residency status.
Getting pre-approved
- 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. 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 (30) 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.
After you apply
- Who will provide me with an update on my loan status?
Your assigned loan underwriter will work directly with you throughout the loan process and will keep you and your realtor 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.
Loan 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).