The North Carolina Housing Finance Agency offers several different loan products that allow for different subordination terms. Review the list below to determine which subordination terms are applicable to your loan and then scroll down for information on the subordination process and requirements. Please note that a processing fee of $250 may apply depending on the subordinate loan type. We will notify you if a fee is due once your package is received.
NC Home Advantage MortgageTM
- The 3%, 5%, $8,000 and $15,000 down payment assistance loans cannot be subordinated until seven years from the date of closing. If it has been seven years since the closing date, you may request a subordination subject to the process and requirements detailed below.
- The $15,000 down payment assistance offered by the Hardest Hit Fund Program (which was only available in Cumberland, Cabarrus, Johnston, Mecklenburg and Wake Counties) cannot be subordinated.
- Other down payment assistance options offered with the NC Home Advantage Mortgage™ loans, such as the Community Partners Loan Pool, may be subordinated at any time, subject to the process and requirements detailed below.
- Only one subordination is allowed. Subsequent refinances will require the down payment assistance loan to be paid in full.
FirstHome Mortgage
- The statewide down payment assistance cannot be subordinated until seven years from the date of closing. If it has been seven years since the closing date, you may request a subordination subject to the process and requirements detailed below.
- Other down payment assistance options, such as the Community Partners Loan Pool, offered with FirstHome loans may be subordinated at any time, subject to the process and requirements detailed below.
- Only one subordination is allowed. Subsequent refinances will require the down payment assistance loan to be paid in full.
NC Foreclosure Prevention Fund
- All NC Foreclosure Prevention Fund loans may be subordinated at any time, subject to the process and requirements detailed below. These loans include the Mortgage Payment Program, Second Mortgage Refinance Program, Principal Reduction Recast/Lien Extinguishment Program and Modification Enabling Program.
Other Agency Loan Products
- Other loan products offered by the NC Housing Finance Agency, such as the Urgent Repair Program and the Community Partners Loan Pool, may be subordinated at any time, subject to the process and requirements detailed below.
Subordination Process and Requirements
Please review the list above to determine whether your loan is eligible for a subordination. The completed subordination request packet must be submitted by the refinancing lender.
Thank you for your request for a subordination. Please provide the NC Housing Finance Agency with the following information:
- A completed “Request for Subordination” form signed by all borrowers on the Agency loan.
- Borrower’s Loan Application - Form 1003.
- Completed W-9 for each borrower on the Agency loan.
- FedEx or UPS Mailing Label for return documents.
- Verification of Non-Occupancy form if active military (copy of military orders).
- If the borrower is refinancing as a result of a divorce or death of spouse. The Agency will need a
divorce decree or a death certificate.
Cash out funds are capped at $500 for any Agency subordinations. Closing costs can be rolled into the new loan (refinance). The NC Housing Finance Agency will subordinate to a HELOC or Reverse Mortgage only if the terms of the Agency loan are forgivable. To avoid delays in processing your subordination request, please verify that the new loan amount on the Agency’s “Request for Subordination” form equals the loan amount on Form 1003 prior to submitting your subordination package.
Prior to submitting your completed subordination package please ensure all sections are completed in their entirety. The majority of delays are caused by incomplete forms and missing documents.
A complete subordination package can be submitted to the Agency via one of the following options:
- Secured e-mail only to [email protected].
- Fax to the attention of Loan Servicing (919-877-5703).
- Mail to North Carolina Housing Finance Agency, Attention: Subordinations, 3508 Bush Street, Raleigh NC 27609.
Agency Response Time
The review process to determine approval or denial of your request can take up to ten business days. Keep in mind that incomplete or missing documentation will extend the review and approval timeframe. If your subordination is approved, your package will be submitted to our legal department to prepare the Subordination Agreement. This process can take up to seven business days. Additional questions about your subordination request can be emailed to [email protected].
