Administrative Policy

Memorandum 36 - Second Mortgages

To provide assistance to first time home buyers.

It is the University's policy to provide second mortgages to first time home buyers who are members of the faculty or exempt staff.

The Financial Affairs Office is responsible for approving and processing all second mortgages.

Eligibility includes faculty and exempt staff only.
Maximum amount: $10,000; Length: 10 years; Percentage: 1% below the average of five local banks; Payment: monthly payments deducted from paycheck
Termination of Employment: The loan becomes due and payable six months after termination of employment. It is expected that payments will continue for those six months.
A promissory note and a mortgage deed is drawn up by one's lawyer. The mortgage deed is recorded in the town where the property is located and then kept by Norwich until the full amount has been satisfied. It is then marked paid in full and it is the responsibility of the homeowner to have it discharged in the town where the property is located.
The amount borrowed from Norwich as a second mortgage and the amount borrowed elsewhere as a first mortgage cannot exceed the value of the property.
Norwich will receive a copy of insurance coverage on the property.