Mortgage Loans

The Trustees of the University have made available a sum of money for the financing of residential mortgages for eligible faculty and professional members. This is to assist eligible members in obtaining appropriate housing within the vicinity of the University area in which they work. Full-time faculty holding the rank of associate professor or higher, assistant professors with two full years of service, and full-time professional employees with two years of service are eligible to make application for mortgage loans. Some of the pertinent provisions of the program are as follows:

1. The mortgage rate will be contingent upon the source of funds available at the time a mortgage is approved.
2. The term of the mortgage will not exceed 30 years, or 70 years of age, whichever is less.
3. A mortgage can be granted up to 80 percent of the appraised value of the property, provided this does not exceed two and one-quarter times the applicant's contract salary.
4. Mortgage will be limited to one home to be occupied by eligible members or their minor children. (* Mortgages will only be granted to eligible faculty members who will be residing in the property to be mortgaged. The provision for minor children may apply in the event of subsequent and legal separation or divorce.)
5. A University employee who is an eligible member for a University mortgage on or before December 31, 1982, may, as of July 1, 1983 obtain another University mortgage on his or her primary residence located within the vicinity of the University area in which the eligible member works limited to the remaining principal balance, the remaining number of years, and at the rate of interest of his or her existing University mortgage, providing the existing mortgage is paid off.
   A University employee who becomes an eligible member of the University Mortgage Program on or after January 1, 1983, is entitled to one mortgage under the provisions of the University Mortgage Program.
6. The program is not designed to provide funds for renovating or refinancing property currently owned by an eligible member.
7. If a mortgage holder ceases to be a full-time employee of the University, the options on settlement of the mortgage are, in the absence of special direction of the Treasurer of the University, as follows: (a) if less than five years' service, mortgage must be satisfied within 90 days from date of separation or change in employment status; (b) if more than five years of service and termination is involuntary, mortgage must be satisfied within 90 days from date of separation or within one year of notice of termination or change in employment status, whichever is greater; (c) if more than five years' service and termination or change in employment status is voluntary, mortgage must be satisfied within 180 days from date of separation or change in employment status.
8. If the mortgagor ceases to be an eligible member and does not satisfy the mortgage under the options stated above, at the option of the University the interest rate on the University mortgage may be increased to the maximum rate of interest then lawful in the State of Delaware, or other appropriate action may be taken by the University including and without being limited to foreclosure and transfer of the deed.
9. When an employee holding a University mortgage has been employed by the University for ten years or more and becomes totally disabled, the mortgage shall remain in effect so long as the disability continues and the employee continues to live in the mortgaged house, providing that the mortgage payments are automatically deducted from monthly disability payments or other guaranteed payments are received from the employee.
10. When a married employee holding a University mortgage dies, the mortgage shall remain in effect either for a period of one year from the date of death or up to the time the surviving spouse no longer lives in the house, whichever is sooner.

For further details and information, contact the Office of the Associate Treasurer-Finance.