FACULTY HOUSING
Secondary Header

Wellesley College provides over 100 dwellings of different types for members of the faculty. Benefits-eligible faculty (half-time or greater) in the professorial ranks (Instructor, Assistant Professor, Associate Professor, Professor or Lecturer) or appointed as Instructors in Science Laboratory, are eligible for faculty housing and have renewal privileges. Other benefits-eligible members of the teaching staff may be eligible for housing on a space-available basis. The first step in the process of applying for faculty housing is to complete an application. Applications for faculty housing may be obtained from Peter Eastment, Director of Housing and Transportation at (781) 283-3433 or peastmen@wellesley.edu.

WELLESLEY COLLEGE MORTGAGE OPTIONS - Revised: 1/1/05

Wellesley College itself currently provides a mortgage program with two components: the adjustable rate mortgage and the second deferred interest mortgage. Below we provide basic information about the program. Further details about the mortgage programs are available from the Controller's Office.

ELIGIBILITY^*

Tenured faculty and physical education faculty with long-term renewable 5-year contracts who work at least half-time (0.5 FTE).

Senior staff level administrators.

Program Description

Applicable to the purchase of a primary residence within a 10-mile radius of Wellesley College.

a) A combination of an adjustable rate mortgage and a second deferred interest mortgage with an interest rate of 2%, such that at least 1/3 of the amount borrowed is financed through the adjustable first mortgage and no more that 2/3 through the second mortgage. Minimum for second mortgage is 1/4 of the total loan amount.

b) Upon sale of the home (or external refinancing), Wellesley College would receive its share of any appreciation in value.

c) The College’s share of the appreciated value will be affected by any capital improvements that faculty make. Major capital improvements to the property, which must be approved in advance by the College, are credited towards the faculty member’s equity portion of the home by discounting the value of the improvement back to the original date of the note. A detail list of approved capital improvements and the percentage credited is available from the Controller's Office.

d) Deferred interest mortgages are applicable only to property in Wellesley and within a 10-mile radius of the campus.

e) The deferred interest mortgage requires repayment at the time the adjustable mortgage is refinanced, paid off, or the property is sold.

f) Combined first and deferred interest second mortgage: Maximum loan of $800,000 with a maximum shared appreciation proportion of 2/3 of loan amount borrowed.

g) A minimum down payment of 5% for the combined adjustable and deferred interest mortgage is required.

h ) The deferred interest mortgage program is intended to facilitate home ownership in close proximity to the College. Priority will be given to first home buyers.

GENERAL TERMS AND CONDITIONS

1) A maximum term of 30 years is available.

2) A formal mortgage application including a financial statement will be utilized. A $1000 application fee will be assessed. See Controller's Office for application materials.

3) At closing, the College will require, at a minimum, a satisfactory title search, a title insurance policy, property insurance, a plot plan, and a satisfactory inspection.

4) The College may require a right of first offer to acquire the property if located in close proximity to the College.

5) In the event of the termination of the mortgage holder's employment with the College for any reasons other than his/her reaching retirement age under the College’s then existing rules and regulations, or if he/she becomes partially or totally disabled (and such partial or total disability necessitates such termination), or if he/she ceases to be the owner of the premises, or if the premises ceases to be his/her principal residence, the Note shall, at the option of the College, immediately become due and payable after notice as provided in the Note. Termination shall not include a leave of absence taken with the approval of the College.

6) The Board of Trustees has allocated limited funding for faculty mortgages, and hence, provision of mortgages is subject to availability of funds and satisfactory credit review.

7) One refinancing is allowed, to enable increasing the mortgagee's equity. A $1,000 fee will be assessed.

INTEREST RATE

1) The interest rate for new adjustable rate mortgages will be set semi-annually somewhat less than 1% below the prevailing rate.

2) The simple interest rate on the adjustable portion may be subject to an upward or downward adjustment every five years not to exceed 2% in a given five-year period and 4% over the term of the mortgage and will be based on the five-year Treasury Bill index published by the Federal Reserve Bank. However, if the adjustable rate is higher than the current rate for new mortgages, the adjustable rate will be capped at the current rate in effect at the time the adjustable rate is calculated.

3) The interest rate on a deferred interest second mortgage is 2%. In addition, a percent of appreciation in value will also be due when the mortgage is paid off, refinanced or the property is sold.