Down Payment Assistance Subordination Request
If you received down payment assistance (DPA) in the past and are refinancing your first mortgage, CDCU may be able to subordinate the DPA lien, and agree to have it remain in a second position behind the new mortgage.
Subordinations will only be approved for:
- Catastrophic events
- Reducing interest rate and/or monthly payments on the mortgage
- Home repairs or retrofitting the home to be accessible with a professional bid & photo supporting evidence
- Repairing an automobile utilized for work, school, or other critical transportation need with supporting evidence
- Pay off any type of reasonable debt so long as the refinancing results in an increase in residual income or a decrease in monthly credit report obligations with supporting evidence
Subordinations will not be approved for HELOC transactions.
Each request is reviewed on a case-by-case basis. To request a subordination complete and submit the Subordination Request Form along with all checklist items. The $75 processing fee may be paid by cash or check in our office or you can pay online using a debit or credit card.
Down Payment Assistance Payoff Request
If you received down payment assistance in the past, depending on the issuing authority and the time elapsed since the DPA loan was issued, the DPA loan is required to be repaid when a triggering event occurs, which may include one or any of the following:
- Sale of the home
- Transfer of title to an owner not on the DPA loan
- Owners move out of the home
- Refinancing to take out equity in the home
- Owner applies for a 2nd mortgage or home equity loan/line of credit
For any triggering events, contact CDCU to obtain the correct payoff information as well as to request the information required from CDCU to complete the payoff and associated paperwork, including a reconveyance of the lien. Note that a transaction fee of $75 will be added to any payoff quotes provided.