The information below addresses common issues for single-family homeowners with loans serviced by the San Diego Housing Commission (SDHC) through programs such as the First-Time Homebuyer program or Rehabilitation Loans and Grant programs.
Refinancing Your Home
SDHC will allow a refinancing of your property to lower your interest rate as long as you are not taking any equity/cash from the property.
If you decide to refinance your property, your new lender may require SDHC to subordinate your existing loan with SDHC to the new financing.
Your loan officer or the escrow officer will help gather and submit the required documentation.
SDHC will require you to sign a Borrower’s Authorization form for us to release information to any person or company regarding your loan. Please refer your loan officer or the escrow officer to this website for instructions and the forms needed to request subordination from SDHC.
If you currently have a Mortgage Credit Certificate (MCC) issued by SDHC, you will lose your MCC tax credit through the refinance. SDHC will require you to sign and submit the Loss of Mortgage Credit Certificate Acknowledgement form at the time you refinance your home.
Reissued Mortgage Credit Certificates (RMCC)
If you have a Mortgage Credit Certificate (MCC) issued by SDHC, it will be lost through the refinance.
However, you may be able to have the MCC reissued – visit http://socalrmcc.com for more information.
Paying Off Your Loan
It may be possible to pay off your mortgage loan before the end of the loan term.
If you are selling your home, have your escrow agent send a “Request for Demand” to email@example.com. You will also need to fill out a Borrower’s Authorization Form for us to release information to any person or company regarding your loan.
Selling Your Affordable Housing Unit
To comply with the long-term affordability restrictions, SDHC will assist you with the sale of an affordable unit that you own in one of the following six for-sale affordable housing developments:
- Bella Rosa
- La Boheme
- Sycamore Walk
SDHC maintains a list of potential buyers interested in purchasing your below-market-value home.
If you own an affordable unit in a development not listed above and have questions, contact firstname.lastname@example.org.
Homeowner Insurance Requirements
Your mortgage requires you to maintain adequate insurance coverage for the life of your loan.
The coverage needs to insure the property against loss by fire, hazards included within the terms “extended coverage,” and such other hazards as SDHC may require.
The amount of insurance you carry must be sufficient to replace your property.
In the event of loss, you are required to provide prompt notice to the insurance carrier and SDHC.
All insurance policies and renewals must include the following mortgagee clause:
San Diego Housing Commission
Loan No. (enter your loan number here)
1122 Broadway, Suite 300
San Diego, CA 92101
Homeowner Occupancy Compliance Monitoring
If you received financial assistance from SDHC to help you buy your home under one of two First-Time Homebuyer programs administered by SDHC or if you live in one of the Affordable For-Sale Housing developments with which SDHC is affiliated, you are required to live in the home as your primary place of residence.
If you do not occupy your home as your primary place of residence, this will result in a default under your agreement, and SDHC may begin procedures to enforce the occupancy requirement through a foreclosure action.
Once a year, you may be asked to complete a form to:
- Confirm you still live in the home
- Confirm you are not leasing or renting your home
- Show evidence your first trust deed loan is current and your property taxes have been paid
- Show evidence the Homeowners Association dues are current, if applicable
- Provide any other information reasonably needed to assure compliance with the terms of your loan
If you have questions about compliance with the occupancy monitoring requirements, email email@example.com.
Avoiding Mortgage Default
If you are facing short-term or long-term financial difficulties that affect your ability to make monthly mortgage payments, you should explore your options immediately. You may be eligible to refinance or modify your mortgage loan, lowering your payment and making it more affordable.
If you have missed payments resulting in late fees and past-due amounts, please contact your mortgage company to discuss options to avoid foreclosure.
It is also important you notify firstname.lastname@example.org of any problem making mortgage payments.
Request for Short Sale
A short sale allows a homeowner to sell their home for less than the amount owed on the mortgage loan.
In this process the lender agrees to release their lien on your home and accept less than the amount owed to pay the debt.
If you sell your property through a short sale and if SDHC’s loss exceeds $600, federal tax laws require SDHC to file a Form 1099–C (Cancellation of Debt) with the Internal Revenue Service.
SDHC will consider a request for short sale based on certain conditions. To request short sale approval for your SDHC loan or grant, follow these steps:
- Complete the Short Sale Form and Checklist
- Gather the required documents
- Prepare a detailed financial hardship letter explaining the reason you are requesting the short sale
- Submit the completed form and all required documents to email@example.com
Once a complete package is received, it will be reviewed by a loan servicing specialist.
The approximate time to review your request for a short sale is two weeks. If SDHC’s loss is greater than $100,000, up to two months of additional time will be needed to present your request to the SDHC Board of Commissioners for approval.
If you have additional questions, contact firstname.lastname@example.org.