Regional & Community Relations

September 25, 2019

2020-21 University Housing Assistance Program (UHAP) FAQ

 

Q: Why does the UHAP exist and how are participants selected?

A: The UHAP program is intended to support the UW’s vision to recruit the best, most diverse and innovative faculty from around the world. Over the first three years of this initiative, the program aims to fund 10-12 loans per year for newly-recruited tenure-track assistant or early-career associate professors. Participants are nominated by deans with final selection and approval made by the provost.

 

Q: Is the program right for me?

A: The UW has partnered with the Commission and local lending institutions that understand and can provide information on the program. Once nominated, a representative from the Commission will review the program with you and will refer you to participating lenders.  The program is designed to assist faculty purchase a home in the greater Seattle area. If you have your own funds for a 20% down payment, depending upon your situation, there may be other options better suited to your needs.

 

Q: What do I have to do to participate?

A: Participants must be nominated by their dean, approved by the provost, and officially invited to participate by the Office of Academic Personnel. Upon invitation, the participant will have one month to confirm their interest and reserve their spot in the program.

 

Q: Does an invitation to participate in UHAP guarantee that I’m going to get a loan?

A: No. Actually being approved for a loan will depend on many factors, including household income level and credit history. The lending institution, not the UW, will manage the loan approval process.

 

Q: If I am selected as a participant in the Program, how do I access it?

A: We recommend reaching out to the Commission first to discuss benefits and answer initial questions regarding the program before contacting a lending institution.

The UHAP loan is considered a second mortgage. The borrower will need to have or acquire a first mortgage with an approved lender and initiate a UHAP loan with the lender within the first two years of employment at UW.

 

Q: How long do I have after being selected to participate in the Program before I have to purchase a home?

A: The participation period is two years from the employment start date, provided you reserved your spot in the program upon official invitation. The loan must be closed by the two-year deadline.

 

Q: Is the UHAP a loan or a grant?

A: It is a loan with favorable terms.

 

Q: What are the terms of the loan?

A: The 2020-21 UHAP program interest rate is 3.5% or 75% of the rate on the first mortgage, whichever is lower. This rate structure is in compliance with Fannie Mae guidelines.

The payment is deferred for a maximum of seven years. After 7 years, the loan will amortize for 23 years for a maximum term of 30 years. However, if the purchased home is sold or refinanced, the loan is due upon closing or sale. If the home is no longer the UW employee’s primary residence, or if the UW employee leaves the UW, the loan is due in full for the borrowed amount plus any accrued interest within six months.

Participants will be subject to the terms and conditions in place during the program year during which they were invited (see “Could the terms of the program change?” below).

 

Q: Can I buy a house anywhere?

A: The program is limited to houses purchased in King, Pierce and Snohomish Counties. The loan must be used to purchase a primary residence. The program cannot be used to purchase raw land.

 

Q: How much can I borrow?

A: The loan is limited to 10% of the price of the purchased home or $90,000, whichever is less. The loan limits will be revisited annually to reflect changing home values over time.

 

Q: If I leave the UW, but don’t sell the house, how long do I have to pay off the loan?

A: Six months from the UW employment end date.

 

Q: Could the terms of the program change?

A: Yes. Although the program will be re-evaluated annually, participants will be subject to the terms and conditions in place during the program year during which they were invited. In other words, if you were invited to participate in the 2020-21 program, you will not be subject to new or revised terms and conditions of the 2021-22 program or future program years. Once an invitation to participate in the program has been extended, the terms at the time of invitation will remain in place for the duration of the 2-year participation period, including the maximum loan amount.

 

Q: Does the loan have a right of survivorship?

A: Yes. If the UW employee passes away during the term of the loan, the surviving spouse would be the primary borrower on the loan. If the home is sold or refinanced, the loan is due upon closing or sale. If the home is no longer the surviving spouse’s primary residence, the loan is due in full for the borrowed amount plus any accrued interest within six months. The surviving spouse is responsible for notifying the University if the home is no longer their primary residence within six months. The right of survivorship does not apply beyond the surviving spouse.

 

Q: Who can I contact if I have questions about the UHAP program?

For general questions about the UW’s UHAP program not answered in these program materials, please contact: Mia Martincic at UW Treasury Office: martim8@uw.edu or 206-897-1693