MOP Loan Overview
MOP provides first deed of trust loans with a one-year adjustable rate based upon an internal university index. There are two types of MOP loan options: Standard MOP and 5/1 MOP.
| Standard MOP | 5/1 MOP | |
|---|---|---|
| Fixed Rate Period: | 1 year | 5 years |
| Qualifying Interest Rate: | Standard MOP rate at time of loan commitment | 5/1 MOP rate at time of loan commitment |
| Annual Interest Rate Adjustment: | Capped at +/- 1%, subject to min. and max rates |
|
| Maximum Loan Term: | 30 years | 30 years |
| Minimum Interest Rate: | 3.25% | 3.25% |
| Maximum Interest Rate: | 10% over the initial interest rate | 10% over the initial interest rate |
| Maximum Payment-to-Income Ratio: | 40% | 40% |
| Maximum Overall Debt-to-Income Ratio: | 48% | 48% |
| Private Mortgage Insurance (PMI): | No PMI required | No PMI required |
| Lender Fees: | No points or lender fees | No points or lender fees |
| Maximum Loan-to-Value Ratio: |
For loans up to $2,370,000*, a 10% downpayment is required (90% LTV)
For loans over $2,370,000*, a 20% downpayment is required (80% LTV) *Loans in excess of $2,370,000 require additional approvals |
|
Property must be within a reasonable distance of participant’s work location.
Participant must not have owned a primary residence within the prior 12 months near work location.
MOP loans are available only for a single-family residence (5 acreage limit) or a condominium.
Property must be the principal place of residence for the primary participant for the term of the loan.
Loan may not be used for construction financing.
Repayment in full is required six months after separation from the university (unless for university retirement or disability).