Cal Poly Partners (formerly Cal Poly Corporation) recently launched a mortgage assistance program to help faculty and staff members purchase a home on campus.
During the October 26, 2023, Cal Poly Partners Board of Directors approved an agreement with SESLOC that creates the framework of a lending program that provides mortgage assistance for faculty and staff who are looking to purchase resale units in the Bella Montana community or the new Vista Meadows development at the corner of Slack Street and Grand Avenue.
The goal of the program is to help employees purchase on-campus homes with no down payment or Private Mortgage Insurance (PMI).
The mechanics of the program involve home buyers obtaining a first and second mortgage upon purchase of the home. The first mortgage would be 80% of the purchase price; the second mortgage would be 20% of the purchase price. Cal Poly Partners would provide an unconditional guaranty on the second mortgage, which would allow SESLOC to waive any PMI requirements.
Under the terms of the program, standard SESLOC market interest rates would be available for first mortgages, with no pricing premium related to the program. In addition, second mortgage interest rates would be the same as the first mortgage rates, which is a significant benefit to Cal Poly employees.
On average, in the general marketplace, second mortgage interest rates are typically .5% to 1% higher than first mortgage interest rates. In addition, SESLOC has agreed to waive certain loan processing fees.
This mortgage assistance program is the result of a demand study performed in 2021 by Cal Poly Partners, in partnership with the university to help gain a better understanding of current housing needs. Among the findings was the need for financing and mortgage assistance.
Faculty and staff who are interested in the program should contact Cherise Long at SESLOC at