Mortgage Plans

Mortgage Plan for Home Ownership

As outlined below, eligible faculty and staff may be granted a subsidized conventional mortgage loan to build or purchase a house in South Hadley, Granby or Holyoke. In addition, eligible faculty members who wish to build or purchase a house in South Hadley (condominiums are excluded) may request a shared appreciation mortgage (SAM) loan. Each mortgage request is considered separately and is subject to review and approval by the President and the Finance Committee of the Board of Trustees. An individual's ability to repay the requested mortgage loan will be confirmed before a subsidized loan will be granted. In addition, consideration will be given to the location, size, condition and other factors that will affect the subsequent resale value of the property.

Mortgages will be issued by an outside lender with the College making provision for a subsidized interest rate. Loan documents will conform to mortgage industry practice. A standard application form will be used along with standard documentation (which includes a property survey, market appraisal, title insurance and credit check which are done at the borrower's expense). For mortgage loans subsidized by the College, continued employment with the College and the continued use of the home as the primary personal residence are conditions of the loan subsidy. The loan subsidy will end ninety days from the date of the termination of employment from the College or from the cessation of the use of the property as the primary personal residence.

The College will subsidize refinancing only for individuals who are newly eligible for the program, or if another home is being purchased. Refinancing or an additional mortgage may also be subsidized (within the overall lending limits) if major capital improvements are made to the property. In general, a major capital improvement must add significantly to the square footage of living space and the value of the dwelling.

These terms are subject to periodic review and alteration by the Trustees. For more details and for information on current policy, individuals should consult the Office of the Associate Treasurer, Room 2, Skinner Hall.

Revised: September 2006