Northern
Arizona Council of Governments
119 EAST
ASPEN AVENUE
·
FLAGSTAFF, ARIZONA 86001-5222
(928)
774-1895 ext. 1148
·
FAX (928)
214-0430
KENNETH
J. SWEET
EXECUTIVE DIRECTOR
HOMES FOR ARIZONANS SUBORDINATION REQUESTS
FOR LIENS AFTER 1/1/04
The Northern Arizona Council of Governments (NACOG) administers the Homes For Arizonans Program (HFA), from a grant received by the Arizona Department of Housing. After initial loan closing with NACOG, these loans are serviced by the Arizona Department of Housing.
The program will subordinate our lien position to a new first mortgage for a refinance to a lower rate and payment only. Only 30 year, fixed rate loans are eligible; and taxes & insurance must be impounded. Increases in payment, reduction in term; cash out or payoffs of any kind will require repayment of the HFA lien. All closing costs and loan terms are reviewed, and subject to requests for additional documentation, in order to determine the best loan available for the borrowers.
In order to process requests for subordination of current HFA liens, your request must be sent to the Arizona Department of Housing. The provisions of the assistance outlined by the State of Arizona, who funds this program, allows for review of all subordination requests, as a lender, to determine continued affordability to the homeowners, and to determine risk of our lien position. The Department of Housing will review the documentation for approval.
If approved, the Department of Housing will prepare their Subordination Agreement and forward to the title company, upon receipt of a pre-audit of the settlement statement. This process takes approximately 3 weeks from receipt of a complete package from the lender. Actual procedures and guidelines may change, so contact made directly to the Arizona Department of Housing is recommended prior to submission of Subordination requests.
The following paperwork is required to process all requests for subordination:
1) Current appraisal for property
2) 1003 application for new loan
3) 1008 Transmittal Summary or MCAW for new loan
4) Good Faith Estimate for new loan
5) Copy of payoff statement for current first mortgage
6) Copy of current credit report
7) Letter from new lender, on letterhead, outlining
a. old loan amount, type, interest rate & term, pre-payment penalty, if any, and
b. new loan amount, type, interest rate & term, pre-payment penalty, if any, and purpose of refinance, signed by loan processor or underwriter
The Arizona Department of Housing is located at 1700 W. Washington, Ste 210 Phoenix, AZ 85007. Their phone number is 602-771-1000; fax number is 602-771-1002. Please contact their office directly if you have any questions.