Zero Interest Program Loan (ZIP)

Zero Interest Supplemental Home Loan Program

UC Davis has been working together with the University of California Office of the President, or UCOP, to evaluate new approaches to make housing more affordable. These efforts led to the development of a Zero Interest Program Loan, or ZIP loan. This loan is primarily intended to be a recruitment tool to help our campus build a representative new generation of faculty and is expected to help recruit assistant professors as well as difficult to fill academic positions.

Eligibility

  • For recruits receiving offer letters on January 1, 2023 or thereafter
  • Is subject to meet the underwriting guidelines for the program loan
  • Must be a full time University appointee holding an eligible title in the following categories:
    • Academic Senate
    • Acting Assistant Professors
    • Academic titles equivalent to titles held by Senate members as defined in University Policy
    • Senior Management Group or above
  • Only one ZIP loan and one ZIP participant is allowed per purchase transaction
    • The campus will specify the one ZIP participant at the time of nomination
    • The ZIP participant will be designated as the Primary Borrower for the Program Loan and will assume all tax reporting and forgiveness parameters tied to the Program Loan

Note: Program participation is subject to the availability of funding by the nominating school/college/unit.

ZIP Overview

  • Interest Rate: Zero percent interest
  • Monthly Payment: No monthly payment
  • Loan Term: 10 - 11 years, depending on the funding date
  • Minimum Loan Amount: $10,000
  • Maximum Loan Amount: $150,000
  • Forgivable Feature: 10% of principal forgiven annually; subject to participant meeting forgiveness criteria
    • Any loan forgiveness will be reported as taxable income in the year forgiven on a W-2 form and is subject to standard withholding requirements
  • Lien Position: 2nd or 3rd
    • Can be used in conjunction with MOP or an outside loan
  • Transaction Type: Purchase of a primary residence (single family home or condo)
  • Loan Acceleration: ZIP is a condition-of-employment loan. The ZIP loan can become due and payable before the due date (loan acceleration date) if borrower separates for any reason (including upon death, retirement or disability), becomes ineligible, or when the property securing the loan is sold or transferred

Note: ZIP loans may not be combined with campus SHLP loans or Faculty Recruitment Allowances

For Prospective Applicants

Take a moment to explore the information available and discover how our home loan programs can help make your homeownership dreams a reality. 

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Have questions or need assistance? 

Reach out to our campus Home Loan Coordinator:

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