The Supplemental Home Loan Program (SHLP) was established in March, 1993, to provide below-market-rate secondary financing to assist eligible faculty members and members of the Senior Management Group in the acquisition of a principal place of residence. This Program may be used in conjunction with the University's Mortgage Origination Program (MOP) loans or conventional financing to reduce the cash down payment required to as low as five percent.

The Program is designed to provide flexibility to address the affordability needs of borrowers and the funding capabilities of each campus. Campuses/labs are authorized, within any restrictions imposed by federal/state laws and regulations, to determine the loan size, interest rate, term and method of repayment for each loan.

The Davis Campus offers the following financing options:

• Regular Amortized Payments: Provides a fixed monthly payment of principal and interest at 7% for a 10 or 12-year term.

• Regular Amortized Payments with a Balloon: Provides principal and interest payments based upon an amortization term, which is longer than the actual term of the loan. This allows for lower monthly payments but with a substantial payment due at maturity.

• Interest Only Payments: Interest is paid each month (calculated at the principal balance multiplied by the note rate, then divided by 12). The original principal amount of the loan is then due at maturity. For example: The monthly interest only payment of a $20,000 loan at 7% interest over five years is $116.67. At maturity, the full $20,000 principal balance, plus any unpaid interest, is due.