City or Agency loans may be subordinated in the following circumstances:
The property owner is refinancing for a lower interest rate only with no cash-out or withdrawal of equity.
The refinancing or assisting of the unit is not reasonably available on substantially comparable terms without the City or Agency subordination.
Program regulations require that the Housing Division receive the following:
A written request from the property owners requesting subordination of the City or Agency lien on their property. In the request, the property owner must state that the new loan to which the City/Agency loan is to subordinate to will be for a lower interest rate and that with without subordination that refinancing is not reasonably available on substantially comparable terms.
Itemized breakdown from the lender of the new primary loan (a "Good Faith Estimate/Loan Estimate").