Wesleyan Mortgage Program
Policies and Guidelines
Effective July 1, 2006

 

Purpose of Program

Wesleyan provides first mortgage assistance on residential properties for the purpose of supporting and encouraging faculty on at least three-quarters time appointments (excluding visitors and retired faculty), professional librarians, and staff to secure home ownership within reasonable commuting distance of the campus, subject to the conditions set forth below.

Eligibility Guidelines for a Wesleyan Mortgage

·         Faculty members who are at least on three-quarters time appointments (excluding visitors and retired faculty) are eligible for one mortgage under the current program.

·         Starting July 1, 2006, professional librarians and staff members who are at least three-quarters time who relocate from further away than 50 miles in order to accept a position at Wesleyan, are also eligible to take advantage of the mortgage program within three years of their hire date. Staff members eligible for the program under previous guidelines will remain eligible through June 30, 2011.

·         Faculty, professional librarians, or administrative staff[1] who were eligible for a Wesleyan mortgage prior to July 1, 2001 may obtain one new mortgage under the program, provided they do so prior to July 1, 2011.

·         The financial condition of borrowers must be acceptable.

Location of Mortgaged Residence

The mortgaged residence must be within a 25 aerial mile radius of the campus.  This circle includes New Haven and Hartford.  A map and list of localities is available on the Human Resources web site at http://www.wesleyan.edu/hr/forms.html

Mortgage Terms

·         A 30 year fixed rate mortgage or a 10/1 adjustable rate mortgage (ARM) will be provided by Liberty Bank.

·         The maximum mortgage provided is $300,000.

·         The minimum down payment required is 5% of the purchase price of the house.  For houses priced in excess of $315,000, the minimum down payment required is the difference between the purchase price and $300,000.

·         Liberty Bank will discount the interest rate charged on the loan by:

§         1.125% for a 30 year fixed rate mortgage; in addition, you will receive an amount equal to 0.25% of the mortgage amount at closing

§         1.25% for a 10/1 ARM (there is an additional 0.25% discount for automatic deduction from a Liberty Bank checking account)

• Mortgage insurance (or a second mortgage) will be required if the down payment is less than 20% of the purchase price.
• There are no pre-payment penalties and the borrower may make extra principal payments.
• Monthly payments will be made electronically by an automatic payment arrangement/debit from the employee’s checking or savings account on a monthly basis.

Other Mortgage Limitations

·         All owners of the mortgage premises shall be makers on the Note.

·         Applications must meet normal credit underwriting criteria

·         Mortgage loans are not assumable or transferable.

·         In the event that two otherwise eligible faculty and staff share the same residence, only one Wesleyan mortgage will be granted.

Mortgage assistance is available only for the purchase of a primary residence. Mortgage assistance is not available for:

·         Home improvements or renovations, even if done at the time of the purchase of the home.

·         Re-financing of current mortgages or for mortgage financing where no current mortgage exists.

·         The acquisition of investment property, including a multi-family house even if occupied by a Wesleyan employee.

Wesleyan compensates Liberty Bank to reduce your interest cost.  This payment, up to $15,000 on a $300,000 mortgage, is a taxable benefit and is prorated based on the amount of the mortgage (e.g. the amount is $10,000 for a $200,000 mortgage).

The Application Process

The loan application will be processed by Liberty Bank of Connecticut at its Middletown, Connecticut office, 55 High Street.  The telephone number is (860) 344-7314.  There is no application fee, but standard closing costs including attorney fees, title insurance, recording, appraisal, credit bureau reports, flood certification fees, and courier/mailing fees must be paid by the Applicant. 

The following procedures should be followed in obtaining a Wesleyan Home Mortgage.

Before you contact Liberty Bank, you will need a letter of eligibility for a Wesleyan Mortgage, which can be obtained by contacting the Human Resource Office at 685-2100.

To obtain a copy of the application and make an appointment for an initial discussion about your financing needs, please contact either of the following Liberty Bank representatives:

 

Faith Wilson

Liberty Bank, 55 High Street, Middletown , CT 06457
Voice:  (860) 344-7326  Fax:  (860) 344-7342
fwilson@liberty-bank.com

 

David Slyne
Liberty Bank, 55 High Street, Middletown , CT 06457
Voice:  (860) 704-2122  Fax:  (860) 344-7342
dslyne@liberty-bank.com

 

 

Liberty Bank also conducts seminars for home buyers. The Liberty Bank web site can be found at www.liberty-bank.com.

Liberty Bank will provide a pre-qualification mortgage letter which will document the amount of financing you are eligible to receive. This type of document is often required by sellers and their real estate agents.

The current rate in effect can be obtained by calling Liberty Bank or visiting their website.  The borrower must make a minimum down payment of 5% of the purchase price. If you need to secure financing above the $300,000 mortgage, the Liberty Bank representative will be prepared to discuss various options with you.  Liberty can provide a second mortgage, in addition to the 1^st mortgage.  For borrowers with financing needs substantially above $300,000 it may be more economical to have Liberty provide the entire 1^st mortgage.  Liberty will provide the various payment options for the borrower’s consideration.

We recommend that you secure the services of licensed real estate agent to represent you in your search for a house. In addition to helping you find your home, the agent will be able to help you identify steps that must be taken once an offer is accepted.

Once a purchase and sales agreement has been signed you are required to arrange for a home inspection and, possibly, a water test. (The latter is only required when property has a well). 

Liberty Bank will arrange for the property appraisal and will also complete its application review including credit checks and employment/income verification. This process will take from 4-6 weeks, but may vary based on the property being appraised.

The loan approval is valid for 60 days from the date of commitment. A closing must occur within that 60 day period to secure the rate quoted. 

If you have any questions about the program change, please contact

Nathan Peters @wesleyan.edu or x2833.