CDC Subordination Policy for all loans funded through the DuPage Community Development Commission

On February 22, 2005 the Home Advisory Group approved the following Subordination Policy regarding Borrower Refinancing and Subordination of County Loans.

• Borrower cannot take any cash out.
  
• Borrower may roll into the new first mortgage only reasonable and customary closing costs associated with the refinancing (this does NOT include points paid to buy down the interest rate further, but does include expenses such as the appraisal, credit report and title charges).
  
• The new first mortgage principal balance cannot exceed the original first mortgage principal.
  
• Borrower may refinance into a 15-year mortgage provided that they have the capacity to handle the additional payment.  Such situations must be reviewed on a case-by-case basis and obtain the approval of the DuPage Homeownership Center and the Lender.
  
• Borrower must refinance into a fixed-rate mortgage.
  
• The first mortgage lender will escrow taxes and insurance, if the lender had been doing so prior to refinancing.

Please contact DuPage Community Development Commission with further questions at: mailto:communitydev@dupageco.org