Send Subordination Requests to:

Penn Home Ownership Services
Email:
phos@upenn.edu
Phone:
215-989-7422
Fax:
215-898-0488

Location:

3401 Walnut Street St., Ste. 440A

Philadelphia, PA 19104-6228

Subordination

If you are 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. Applying for a cash-out refinance and/or Home Equity Line of Credit are not permitted until the forgivable loan is completely satisfied. As stated in the legal documents, PHOS 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 to securely PHOS the information below. 

  • your application and underwriter’s analysis (Fannie Mae 1003 & 1008)
  • LP/DU findings
  • your credit report
  • your blank Subordination Agreement (Please include recording document numbers and the first lien loan amount. PHOS is not responsible  for delays caused by errors on subordination agreements.
  • your overnight Express Mail label as an email attachment if the recording is not being done by PHOS.
  • your appraisal waiver sheet
  • closing date

Please let PHOS know if your banking institution will be recording the subordination document, otherwise PHOS's in-house title company will record the document and charge a fee. 

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.