Office of Loan Programs

Common Questions about MOP Loans
Jay Valancy
March 2003

For the past year, mortgage rates (including MOP rates) have been at historically low levels. In addition, the continuing appreciation of real estate values has resulted in an increase in the amount of equity for most California homeowners. Accordingly, our office has received a number of questions concerning MOP loans:

1. Can I refinance my MOP loan with a new MOP loan and take cash out?
No. It is not possible to use a MOP loan to complete a cash-out refinance. If you would like to tap into your home’s equity, you may wish to explore obtaining a home equity line, or refinance with another lender.

2. If I payoff my MOP loan now, can I get another MOP loan in the future?
Only on an exception basis. A second MOP loan is considered an exception under the Program. Decisions concerning allocations of MOP funds are made at the campus level, and are influenced by the amount of funds available to the campus for new loans. Please contact your Department Chairperson if you would like to pursue obtaining a second MOP loan.

3. Can I transfer my MOP loan to another property?
No. MOP loans are underwritten and recorded for a specific property. If you decide to sell your current home, your MOP loan will be paid off at the close of escrow. You will need to find another lender for your new home unless you receive an exception for a second MOP loan.

Return to Index