| Financing Guidelines |
|
Down payment assistance will consist of a zero interest forgivable loan (second mortgage) in the amount of $3,000 to be applied towards the required down payment, closing costs and/or reduction in principal amount. Recipients will be required to sign a loan agreement and second mortgage with the University that would require the recipient to occupy the housing unit for a period of not less five (5) years. The second mortgage will be forgiven at a rate of 20% per year with the entire second mortgage amount forgiven after year five (5) of occupancy. If a recipient moves, sells or no longer occupies the property, or is no longer an employee of the University within the five (5) year period, the remaining prorated balance of the second mortgage is immediately repayable to the University. Recipient will cooperate with the University, or its designee, in monitoring compliance with the loan agreement and second mortgage and will supply necessary documentation and information. Faculty or staff who voluntarily terminate or who are terminated for cause within five years of receipt of the down payment assistance are responsible for repaying the University any remaining prorated balance of the second mortgage. Faculty and staff are not required to repay the University for any remaining balance of the second mortgage as a result of the following:
This down payment assistance is considered income to the employee and therefore the recipient is responsible for any related income tax liability. |