CE-AM

Clinician Educator – Arranged Mortgage Program

The Clinician Educator – Arranged Mortgage (CE-AM) loan is a second mortgage loan offered only through the Stanford Federal Credit Union (Stanford FCU). This loan is not a Stanford University housing program loan. The CE-AM second mortgage loan was designed to be used in conjunction with first mortgage options and the Stanford University CE-DIP loan program to offer an alternative to financing a Clinician Educator’s home purchase. The interest rate on the loan adjusts one time at the end of the fifth year as the CE-AM loan transitions from an interest only loan to an amortizing loan. The loan payments will increase in year six to include a payment of principal and may include a rise in the initial interest rate. The loan has a twenty-year term with the following features:

• Fixed Interest Only Payments in Years 1 through 5

• Principal and Interest Payments in Years 6 through 20

• Payments in Years 6 through 20 are amortized over a twenty-five year term

• There is a balloon payment due at the end of the twenty year loan term

CE-AM is to be used for a purchase, not to refinance existing mortgage loans. The CE-AM borrower is able to purchase a more expensive home than if he/she used only a conventional mortgage and required down payment.