Can MOH borrowers use any lender to refinance?
For DALP, City 2nd, BMR, PIC and TND:
No. Homeowners with these MOH loans MUST work with lending officers on our "Approved Lender Officer List." This requirement is for the benefit of homeowners. Those on the list have attended our workshops on City Loan Programs. They are aware of City requirements, and therefore able to expedite the refinance process. This requirement was implemented starting April 1, 2009.
For CHRP, CalHOME, CERF and Condo Conversion Liens:
There is no "Participating Lender" requirement for these loans.
Is there an "Approved Lending Officer" requirement for former SFRA borrowers?
Yes. Starting July 1, 2012, former SFRA borrowers need to work with one of our "Approved Lending Officers" when they refinance. We will decline a subordination request if the LENDING OFFICER is NOT on our approved list.
Will MOH provide a "BMR Reprice Amount" for Refinance purposes? (udpated April 2012)
Starting April 2012, MOH will stop providing repricing letters on its BMR units for refinance purposes. Repricing will be done during resale of the BMR unit. Please be infomed that we do not require appraisal reports for subordinaiton review purposes on MOH BMR units. However, for borrowers and lenders who want to know what value MOH will use in its subordination review purpose, we have created an "Estimated Valuation for MOH BMR units (for Refinance Use Only)". It can be found under "Homeowners" section, at HERE.
Is there any processing fee to request subordination?
Yes. There is a $522 Administrative Fee to process a subordination request.
Is the $522 Administrative Fee refundable? What are the acceptable payment forms? Who should it be addressed to?
The $522 Admin Fee is non-refundable. We accept only cashier or escrow checks. Personal checks are NOT accepted, and will be rejected. The Admin Fee checks should be addressed to: "City and County of San Francisco."
Can a borrower pay the $522 Admin fee AFTER the refinance is approved and closed?
No. The $522 is a processing fee, and we need to receive it BEFORE starting our subordination review.
What is the Admin Fee amount if the property has another MOH loan on a BMR unit? (For example: DALP in a BMR unit)
The Admin Fee is still $522 to process both the 2 subordination requests on the same property.
What if the borrower has a Mortgage Credit Certificate (MCC) on the unit?
Borrowers may want to apply for a Re-Issue MCC (RMCC), as MCC will expire after refinancing. There is a separate $600 fee to process RMCC. Please visit our RMCC webpage for more details.
Will MOH allow consolidating loans in a refinance?
MOH will NOT consider consolidating 2 or more loans in a refinance, unless these loans were originally in front of the City loans / liens during purchase.
What is MOH's policy about Home Equity Line of Credit (HELOC)?
MOH does not allow Home Equity Line of Credit (HELOC). This policy is in place to protect homeowners with MOH loans and liens. HELOCs typically involve variable rather than fixed rate. A variable-rate loan financing is not allowed by MOH.
What is MOH's policy regarding "Home Equity Loan" on BMR units?
Owners of BMR units administered by MOH must contact MOH and receive approval, before applying for a home equity loan. The BMR homeowner must attend a Post-Purchase Counseling class from a participating HUD-approved non-profit housing counseling agency prior to applying for such a loan. MOH may consider home equity loan requests for the following reasons: to finance major expenses such as home repairs, medical bills or education. All other MOH underwriting guidelines must be met, including debt-to-income and loan-to-value ratios.
A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. A home equity loan creates a lien against the borrower's house, and reduces actual home equity.
How much can my new refinance loan amount be?
The new loan amount CANNOT exceed the amount of the original (or existing) mortgage, except in special cases.
Can Escrow and Lenders send in a subordination request by email?
The original subordination request has to be submitted BY MAIL. Missing and additional loan documents can be submitted by email to avoid processing delays.
Where can I read the official subordination policy for MOH units?
The Subordination Policy Guidelines can be found on Page 2 of Subordination Document Checklist.