Subject to the availability of funds and to the approval in each case by the College’s Treasurer, mortgages will be granted to eligible applicants on the following terms:
The applicant must be a person who is a member of the General Faculty with the rank of Professor, Associate Professor or Assistant Professor, with a tenure track appointment. Regulations limit the number of mortgages that the College can issue to five (5) or less per year. They will be issued to those qualifying on a first-come, first-served basis.
2. Use and Location of Property
The property must be the principal residence of the applicant and located in Pennsylvania within a radius of twenty-five miles from the campus.
3. Mortgage Terms
Mortgages will be granted for the purpose of purchasing homes only. Mortgages will not be granted for properties owned by eligible employees prior to their employment at the College or prior to their becoming eligible for the Mortgage Program. The program does not provide for home improvement loans or refinancing of existing mortgages.
The interest rate on all mortgages will be the then-current Applicable Federal Rate, rounded up to the nearest quarter percent, at the time of application. All mortgages will be fixed-rate mortgages.
c. Maximum Amount
The maximum amount for any College mortgage is 85% of the appraised value of the property up to $350,000.
d. Minimum Cash Down Payment
The minimum down payment is 15% of the purchase price of the property.
e. Maturity Date
The College will grant a twenty-, thirty- or forty-year mortgage. No one may participate in the Bryn Mawr College Mortgage Plan for more than forty years.
f. Amortization of Principal
Principal and interest are to be paid to Bryn Mawr College in equal monthly installments so as fully to amortize the mortgage at the expiration of its term. The usual method of payment will be through payroll deduction.
g. Insurance and Taxes
Each property shall be insured at settlement by title insurance in an amount not less than the amount of the mortgage and by homeowner’s insurance by an insurer approved by the College for a similar amount against risk of fire or other damage with extended coverage. Insurance policies will contain the usual mortgagee clauses. Within thirty days after the end of each taxable year, the mortgagee shall submit to the Controller's Office evidence that all real estate taxes on the property for the year in question have been paid in full and that insurance premium payments are current.
The unpaid balance of principal may be prepaid at any time, without penalty. The unpaid balance of principal must be prepaid at the time that the property ceases to be used as the principal residence of the mortgagee.
i. Severance of Employment
If the mortgagee ceases to be employed by the College for any reason, the remaining principal of the mortgage and accrued interest thereon shall be paid to the College within six (6) months after termination of employment occurs.
j. Amendments to Plan
The College reserves the right to alter or amend this mortgage program at any time or to revoke it in its entirety without, however, affecting mortgages committed or granted prior to any such action.
Any applicant who wishes to be considered for a mortgage must complete an application. The College utilizes third parties to assist with the credit/application review, the property appraisal and document development/processing. Whether or not the mortgage is granted, the applicant will be responsible for paying those expenses; the fees are estimated to be, but not limited to, approximately $2,000.
The College will only consider approving mortgages that are recommended through the third-party credit review process and for which the appraised fair market value meet or exceeds the required amount (see “Maximum Amount” section). Contact the College’s Chief Administrator's Office for more logistical details and the application paperwork.