Subordination & Payoffs

If you received a Down Payment Assistance (DPA) loan on the purchase of your home in the past, you will need to contact CDCU if you need to either request a new subordination of the DPA or pay off the DPA loan.

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 no-cash-out refinances which serve to lower your interest rate and/or monthly payment, or to shorten the term of your loan. The DPA note cannot be placed in a third position, in which case the DPA balance must be repaid if you are seeking a second mortgage. The request will also be denied if you are requesting a refinance to merge a first and second mortgage.

 

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.