Frequently Asked Questions

Following are some of the questions you may have regarding UB’s Home Loan Guaranty program. If you would like further information, please contact UB’s Office of Community Relations at 716-829-3099.

  • What is UB’s Home Loan Guaranty Program?

    UB’s Home Loan Guaranty Program is designed to help employees purchase and renovate homes in the South Campus community. The program enables eligible University employees to finance up to 120 percent of the purchase price of a home. The Office of Community Relations, whose director has primary responsibility for overall administration of the Home Loan Guaranty Program, administers the program.

  • What is a loan guaranty?

    A loan guaranty is an agreement to reimburse the lender if the borrower fails to meet the terms of the mortgage loan. Under the UB Home Loan Guaranty Program, the University at Buffalo Foundation, Inc. (UBF) is the guarantor.

  • Why has UB developed a Home Loan Guaranty Program?

    UB has developed the Home Loan Guaranty Program to encourage home ownership in the South Campus neighborhoods, which have been home to many UB employees for over 80 years. UB has an essential interest in helping to maintain a strong, vibrant residential community and the Home Loan Guaranty Program is one of the ways the University contributes to the vitality and quality of life in the South Campus community.

  • What are the features of the program?

    UB’s Home Loan Guaranty Program enables eligible university employees to finance up to 120 percent of the purchase price of a home located in the South Campus community. The program includes two types of loans for the purchase of a one- or two-family home:

    • Loans of up to 105 percent of the purchase price (includes 5 percent for closing costs)
    • Loans of up to 120 percent of the purchase price (includes 5 percent for closing costs and 15 percent toward home rehabilitation)

    Private mortgage insurance (PMI) is not required in this program.

  • Who is eligible to participate?

    To qualify for the Home Loan Guaranty Program, the applicant must:

    • Hold an appointment half-time (50 percent) or greater, or hold an adjunct/part-time faculty position with a term appointment with one of the following organizations:
      • University at Buffalo
      • Research Foundation of State University of New York, Inc. (RF)
      • UB Foundation Services, Inc. (UBFS)
      • UB Foundation Activities, Inc. (UBFA)
    • Be a United States citizen or permanent resident alien
    • Be 21 years of age or older

    Employees in the following employment status are not eligible:

    • Adjunct instructors/part-time faculty with a temporary appointment
    • Faculty and staff in a temporary appointment
    • Employees in probationary status
    • Graduate, teaching, and research assistants
    • Student assistants
    • Students

    To qualify for participation in the UB Home Loan Guaranty Program, the employee must certify in writing that he/she will occupy the property as a principal residence. If the employee purchases a two-family house, one unit must be owner-occupied by the employee; the second unit may be rented. For purposes of the program, a participating employee’s principal residence is the home address entered on his/her New York State income tax filing, voter registration, NYS driver’s license, and NYS vehicle registration.

  • What properties are eligible?

    Eligible properties in the Home Loan Guaranty Program are one- or two-family homes located in the South Campus community. This area is within the boundaries of Kenmore Avenue, Main Street, and Winspear Avenue to the north; Eggert Road on the east; East Amherst Street, Bailey, Berkshire, Westminster, and Hewitt on the south; and Main Street and the former Conrail line on the west.

    Single-family homes include units in condominiums meeting Fannie Mae project standards. Multi-family residences, commercial buildings, and townhouses are not included in the UB Home Loan Guaranty Program. Eligible area boundaries are strictly adhered to with no exceptions.

    UB does not have an exclusive relationship with a realtor for the Home Loan Guaranty Program. Prospective applicants may work with the realtor of their choice. The Home Finder Extra and Buffalo Niagara Homes offer information on properties for sale in Buffalo.

  • How do I apply?

    See the Apply for a Loan page for information on how to apply for the program.

  • May I use the program to refinance an existing mortgage?

    Yes. Loans are available for the refinance of employee-owned homes to cover home rehabilitation costs. The principal amount of a refinancing cannot exceed the sum of the following:

    • Outstanding principal balance of any existing financing to which the residential property is subject
    • Closing costs
    • Cost of the proposed improvements to the property, provided that the amount of the loan shall not exceed 90 percent of the appraised value of the property after the improvements

    Borrowers will not be permitted to receive any cash or net proceeds from a refinancing loan.

  • Must I use a licensed contractor to perform the home improvements, or may I perform them myself?

    A licensed contractor or the homeowner him/herself may complete home improvements. Details regarding home rehabilitation are available from the lender.

  • What is private mortgage insurance (PMI) and is it required?

    Private mortgage insurance (PMI), also known as lenders mortgage insurance, is insurance payable to a lender that may be required when taking out a mortgage loan. It is an insurance in the case that the mortgagor is not able to repay the loan, and the lender is not able to recover its costs after foreclosing the loan and selling the mortgaged property. The annual cost of PMI varies between 0.19% and 0.9% of the total loan value, depending on the loan term, loan type, and proportion of the total home value that is financed.

    PMI is not required of the borrower in this program, since the UB Foundation is the guarantor of the loan, thus saving the borrower thousands of dollars. For example, if the PMI of a mortgage is $50.00 a month (added onto the monthly payment), times 12 months for a term of 30 years, the PMI for a home would total $18,000. Or, on a house priced at $150,000, the PMI is typically $98.00 per month, which adds up to $35,280 over the course of a 30-year mortgage.

  • What are eligible closing costs?

    Eligible closing costs include costs and fees charged by the lender to first mortgage loan borrowers in connection with the closing of a loan as well as pro-rated real estate taxes, title insurance premiums, and other similar costs. These costs can be financed through the Home Loan Guaranty Program.

  • Is a down payment required?

    UB’s Home Loan Guaranty Program gives you the option of making a down payment. However, a down payment is not required. Loans are not available for purchases with down payments of 20 percent or more.

  • How will UB know that I continue to occupy the property as my principal residence?

    Participating employees must certify their occupancy annually. Approximately 30 days prior to the anniversary date of the loan, UB’s Office of Community Relations will mail the Annual Residency and Ownership Certification to the employee at the property address. The employee must sign the certification and return it to the Office of Community Relations by the anniversary date of the loan.

    In addition, the university reserves the right at any time during the year to request a certification from the participating employee and to verify the information provided by the employee in his or her certification regarding ownership and occupancy. Failure to timely respond may place the employee at risk of default.

  • Do I have any other obligations?

    Buyers of a single-family home must attend and complete a home-buying seminar. Buyers of a two-family home must attend and complete a home-buying seminar and a landlord seminar. Before closing, you will be required to present a certificate of completion from the providers of these seminars.

    Home-buying and landlord seminars are available through the following organization:

    Housing Opportunities Made Equal, Inc. (HOME)
    Web: http://www.homeny.org/workshoptrainings.htm
    Phone: (716) 854-1400

    Employees must continue to maintain the property as their principal residence. The Annual Residency and Ownership Certification form must be signed and returned to the Office of Community Relations by the anniversary date of the loan each year.

  • Will UB have access to my credit information?

    No. Only the lender will have access to your credit information.

  • Who will own the property?

    The employee will own the property.

  • Will UB deduct the mortgage payments from my paycheck?

    No. There is no payroll deduction for mortgage payments. You will receive payment information directly from the lender.

  • How will I know if I’m credit worthy?

    The UB Home Loan Guaranty Program is offered to eligible employees under an arrangement with selected lenders. An applicant for a mortgage loan under the program must satisfy the lender with regard to the ability to repay the loan based upon the lender’s criteria. The decision to grant the loan rests solely with the lender.

  • What happens if I can’t continue to pay the mortgage?

    The lender will notify UB when a borrower is delinquent in payment. Delinquency is governed by Federal banking regulations and the lender will determine procedures to be followed in case of delinquency.

  • What happens if I sell the property and purchase another house within the South Campus community? Am I still eligible to participate in the Home Loan Guaranty Program?

    You may sell the property at any time. The proceeds of the sale will be used to repay the lender. The loan guaranty is not transferable to the purchaser(s) of the property.

    In order to purchase another home in the South Campus community under the Home Loan Guaranty Program, you must reapply and obtain a new Letter of Introduction.

  • What if I am no longer employed by UB, UBFS, UBFA or RF?

    If you cease to meet employment requirements, the loan guaranty may be withdrawn and the borrower may be required by the lender to refinance the loan or relinquish ownership of the property through foreclosure.

    The University at Buffalo Foundation, at its sole discretion, may choose not to withdraw its loan guaranty when a faculty or staff member leaves employment, but rather grant a grace period not to exceed six months during which the former employee can sell his/her property or refinance the mortgage. The Vice President for University Services must approve such a grace period. In considering the grace period request, the Vice President for University Services will take into account the payment history of the borrower. The former employee is responsible for remaining current on his/her mortgage loan payments during the grace period.

  • Is there a limit to the number or amount of loans available?

    The number of loans available under the program in any fiscal year will be limited and employees are eligible to participate on a first-to-qualify basis. The availability of loans shall be decided by the UB President or authorized designee and may change from year to year and within fiscal years.

  • How can I get more information?

    Contact the University at Buffalo’s Office of Community Relations 716-829-3099.

  • To Apply

    See the Apply for a Loan page for application information.

Barbara’s Story

Barbara Cross, UB Homeloan Program participant
“This program allowed us to buy a home. Because housing was so affordable, it was easy for us.”

Barbara Cross
Assistant to the Director
Office of Special Events
University Heights resident

UB Neighbor

Find out what's happening in the UB South Campus neighborhood

The South Campus Neighborhood

Explore the relationship between the UB's historic South Campus and its surrounding neighborhoods.