If refinancing your home with the intention of keeping your forgivable loan, a Subordination Agreement will be required. Subordinations are only considered for fixed-rate and term refinances. Cash out refinances will NOT be considered. As stated in the legal documents, Penn Home Ownership Services will ONLY subordinate to the second or third mortgage position.
To receive consideration for a subordination agreement, please request that your proposed new first mortgage company send a letter to Penn Home Ownership Services, attn: Director and enclose the following:
An email from Penn Home Ownership Services will confirm receipt of the request. PHOS will review the documents, and if approved, the completed subordination agreement will be provided within fifteen business days.
Please send all Subordination request to: