Guidelines for Refinancing

Current owners of a BMR home may request that the City subordinate their Deed Restrictions to refinance their first lenders’ mortgage(s). Per the BMR Program Guidelines, the City will subordinate to a refinanced first lenders’ mortgage(s) if all of the following conditions/requirements are met at the time of the request for subordination:

1. Loan Amount: May not exceed the outstanding balance of the first lenders’ loan plus non-reoccurring closing costs (not to exceed two points) and no cash out.
2. Loan Terms: Must have a fixed interest rate over the life of the loan and may not contain any provisions for negative amortization, pre-payment or balloon payment, or changes in payments. When the junior loan is a CalHome loan, the first mortgage must mature concurrently with or after the CalHome Loan.
3. Mortgage Insurance: The loan cannot contain provisions requiring borrower to finance mortgage insurance.
4. Impound Account: Impound account for taxes and insurance is required.
5. Hazard / Flood Insurance: “City of Livermore, its successors and assigns” must be named as additional Loss Payee on insurance.

If all of the conditions above are applicable, the BMR homeowner or borrower should email Hello Housing staff or call (415) 863-3036 to start the refinance and subordination process. Hello Housing will provide the lender with a letter stating the BMR restricted value of your home and any other documentation related to the Below Market Rate property. Sample subordination and program documents are available for lenders upon request to help determine if the first loan can work in conjunction with the City of Livermore’s BMR program.

Lenders will be required to submit the following documentation to Hello Housing as part of the subordination eligibility screening:

• 1003 completed loan application
• 1008 or other loan underwriting form indicating amounts and terms of all financing
• A preliminary title report
• Status of client’s Mortgage Credit Certificate program (if applicable)

Subordination package submittals can be emailed or mailed to:

Hello Stewardship – City of Livermore Refinance
P.O. Box 423690
San Francisco, CA 94142

A $650 fee will be charged to the homeowner and due to the City of Livermore upon closing in order to cover a portion of the costs associated with eligibility screening and preparation of subordination documents.

Any requests for exceptions will have to be reviewed by Hello Housing and the City of Livermore.