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Need to Subordinate Your Loan?

The North Carolina Housing Finance Agency offers several different loan products that allow for different subordination terms. Please 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.

NC Home Advantage MortgageTM

  • The 3%, 5% and $8,000 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 MortgageTM loans, such as Community Partners Loan Pool, may be subordinated at any time, subject to the process and requirements detailed below.

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 Community Partners Loan Pool, offered with FirstHome loans may be subordinated at any time, subject to the process and requirements detailed below.

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/Lein 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

Plese 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 North Carolina Housing Finance Agency (the Agency) with the following information:

  1. A completed “Request for Subordination” form signed by all borrowers
  2. Borrower’s Loan Application - Form 1003 (from title company)
  3. Completed W-9 for each borrower
  4. FedEx or UPS Mailing Label for return documents (from lender)
  5. Title Commitment or Title Search from the title company (from lender)
  6. Reverse Mortgage Counseling Certification with budget included. This is only applicable if borrower is requesting a subordination for a reverse mortgage.  (from lender)
  7. 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.

No cash outs are allowed for any subordinations, excluding closing costs rolled into the new loan. If the borrower received assistance through the North Carolina Foreclosure Prevention Fund, reverse mortgages are not allowed on these types of loans.

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 package.

A complete subordination package can be submitted to the Agency via one of the following options: 

  • Secured e-mail only to subordinations@nchfa.com
  • 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

The review process to determine approval or denial of your request can take up to 10 business days. If your subordination is approved, your package will be submitted to our legal department to complete the title and the Subordination Agreement. This process can take up to seven business days.

If you have any questions about the subordination process, please review the Agency Loan Subordination Frequently Asked Questions. Additional questions about your subordination request should be emailed to subordinations@nchfa.com.