The Supplemental Home Loan Program (SHLP)

In addition to the Mortgage Origination Program (MOP), there is the Supplemental Home Loan Program (SHLP). The SHLP is a second mortgage and increases the monthly mortgage payment to the borrower.

The SHLP program is designed to assist junior faculty in the purchase of a first home by decreasing the down payment required for the home purchase. These are faculty candidates who may be able to afford a higher monthly mortgage payment with their new appointment but do not have the resources available for the down payment.

While the MOP has a 90% loan-to-value-ratio, adding a second SHLP loan in conjunction to the MOP may result in a combined loan-to-value (CLTV) ratio of 95%, reducing the required cash down payment to 5.0% The amount the down payment is reduced depends on the size of the SHLP loan and the amount of the total financing.


Loan-to-Value Thresholds for MOP and SHLP Loans as of April 1, 2016

Combined Loan Amount
Less than or equal to $1,620,000
Greater than $1,620,000*

*MOP loans above $1.62 million require approval of the University President, Chair of the Board of Regents, and Chairs of the Committees on Finance and Compensation and are not supported by this campus. Campus SHLP loans may be added to the maximum MOP loan of $1.62 million for combined financing exceeding $1.62 million.


The standard structure for a campus SHLP is $60,000 at 3.25% fixed interest for a period of 10 years; this results in an additional monthly payment of about $587. The UCSF MOP loan limit is $1.62 million. In order to benefit from the reduced down payment, combined financing must be below $1.5 million. Financing may be estimated using the UC MOP Loan Calculator (update reflecting the new loan limit and LTV levels are pending). The monthly SHLP payments (depending on the amount, rate, and term supported by the department) can be estimated using any number of online mortgage calculators, such as this one from

SHLP loans are uncommon, and are related to specific recruitments for which funds have been set aside for this purpose. MOP loans are funded by the University (systemwide) while SHLP loans are funded by the department (in some cases by the school).

SHLP rates may never be set below the MOP rate. Campus policy is that the SHLP rate be the MOP rate plus 0.5%, however departments may request a lower rate but cannot be less than the MOP rate plus a 0.25% servicing fee. The campus does not recommend SHLP rates less than 3.25%.

If a department would like to support participation in the SHLP program as well as the MOP program, a funding source (COA) must be identified on the MOP/SHLP Allocation Request Form submitted to the dean's office.

SHLP loans are requested in conjunction with MOP loans and the eligibility and qualifying criteria for SHLP loans are the same as MOP loans. In come cases a SHLP loan can be used in conjunction with an outside lender, but it is not likely to affect the combined loan-to-value ratio which is the design and intent of the program.

UCSF-Specific Requirements and Procedures for the Supplemental Home Loan Program (SHLP) PDF


The Centrally-Funded Supplemental Home Loan Program (CF-SHLP)

In 2016, the Office of Loan Programs announced support for a Centrally-Funded Supplemental Home Loan Program (CF-SHLP). This is to assist departments who do not have the resources to fund individual SHLP loans for essential recruitments. The SHLP and CF-SHLP don't benefit everyone, but can provide essential assistance to those borrowing less udner the MOP and needing assistance to borrow a portion of the down payment. Candidates and recruiters should discuss this option during recruitment as it may enable a home purchase. departments and canddiates are free to contact Wilson Hardcastle at 415-476-2016 to see if this program is right for them.

The campus allocation to fund CF-SHLP loans is $200,000. Access to these funds can be requested by the dean's offices by indicating their intent and approval on the MOP/SHLP Allocation Request Form. Allocation reservations will be reserved on a first come, first serve basis.

As with standard SHLP loans, CF-SHLP loans must be in the second position and may only be associated with a purchase transaction.  Property and candidate eligibility criteria remain the same as the existing MOP and SHLP programs. 

CF-SHLP Parameters:

  • The maximum CF-SHLP loan amount is $75,000 or 5.0% of the purchase price, whichever is lower.
  • The CF-SHLP maximum loan term is 15 years.
  • The CF-SHLP rate is equal to the MOP rate index plus 0.25% servicing fee. The minimum rate shall be 2.75%.


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Questions regarding the Supplemental Home Loan Programs may be directed to Wilson Hardcastle, 415-476-2016.