A borrower may make a partial prepayment on any of the Stanford loans at any time. For loans with a deferred interest feature such as MAP, DIP, or DIP-T, a prepayment can also be made at any time, but the following conditions must be met first:

  1. The borrower must notify Faculty Staff Housing of his/her intent to make a prepayment.
  2. The amount of the prepayment is at least the minimum required amount according to the loan documents.
  3. For DIP & DIP-T loans, an appraisal meeting the conditions of the note is required. For MAP loans, no appraisal is required as long as the borrower agrees to have the deferred interest calculated based on the note rate. An appraisal for the purpose of any prepayment must be ordered by Faculty Staff Housing. The appraisal fee is paid by the borrower.
  4. If the share of appreciation as determined by an appraisal is used to calculate the deferred interest due on the loan, then a CPA letter specifying capital improvements completed may further reduce the deferred interest obligation and must be submitted by the borrower. Please refer to the Adjustment Improvements document for more information.

The partial prepayment will be applied to both the principal and deferred interest due in the same portion as they are due. Deferred interest due is calculated in the same manner as if the loan is being paid off. Subsequent monthly payments on the MAP loan, if any, will be reduced. For more information, please refer to your mortgage note or to the Mortgage Assistance Program or Deferred Interest Program documents.

For zero interest loans and conventional loans, a prepayment can be made in any amount at any time without having met additional conditions first.

Please contact Faculty Staff Housing to initiate a prepayment on a MAP, DIP, or DIP-T loan, or if you have any questions.