Refinancing of Affordable Units

Department of Housing (DOH) policy does not allow for cash-out refinance mortgages on affordable units. The maximum new mortgage loan amount will be the amount of the pay-off letter(s) plus the closing costs shown on a signed good faith estimate.

The following documents must be submitted to DOH by your lender to initiate the processing of any subordination request:

  • Copies of the recorded City of Chicago junior mortgage related to your request
  • A signed subordination request letter from the new lender, with all transaction details, and the rationale for the refinance
  • A copy of the signed homeowner’s authorization to release information
  • A copy of the signed Loan Estimate for the new mortgage
  • A copy of the signed and properly completed 1003
  • A pay-off letter for a date at least fifteen (15) business days from the date documents are delivered to DOH
  • A copy of the mortgage approval or commitment letter signed by an authorized party of the lender with term, P&I and interest rate details for the new mortgage
  • A copy of new title commitment for the amount of new mortgage
  • A copy of the appraisal used to process the new mortgage
  • A copy of documents to show the original first mortgage amount, P&I, and loan type.
  • A copy of documents to show the original loan amount for any subordinate mortgage, P&I, and loan type

After receipt of all required documents, allow at least 15 days for processing of all subordination requests. Once approved, the subordination will be sent via the U.S. Postal Service, unless a prepaid overnight carrier envelope is provided. Your lender should ensure that the amount of the new mortgage loan and rate are consistent across all documents, even on the title commitment.

If you are refinancing a unit that was purchased through the Chicago Partnership for Affordable Neighborhoods (CPAN) initiative, contact Jason Sethen at the Chicago Low Income Housing Trust Fund at

For a Neighborhood Stabilization Program (NSP) property refinance, homeowners should contact Michael Lofton at

If you received a Chicago Infrastructure Trust down payment assistance grant and wish to obtain a payoff letter, contact Irma Morales at

Homeowners can call 312.744.0826 for further information.


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