Refinancing Your BMR Home

BMR homeowners may refinance their units to obtain a new loan that will result in reduced monthly payments or a lower interest rate. Refinancing is subject to certain requirements and restrictions. If you are struggling to meet your monthly housing payment, we encourage you to contact the City or a housing counselor as soon as possible to discuss resources and options.

BMR Home Refinance Procedure

  1. Identify a Lender - Find a lender of your choosing (the City does not limit which lenders you can work with or maintain an “approved” lender list) and review interest payments and loan scenarios. Be sure to inform the lender that your home is subject to BMR restrictions.
  2. Notify the City - Notify the City of your desire to refinance through the Home Ownership Portal and provide a current copy of your mortgage statement.
  3. City Review - The City will review your request and calculate the current restricted resale value of your BMR home. The City will ensure that your loan (mortgage amount) to value (adjusted restricted resale price) ratio does not exceed the amount specified in your Resale Restriction Agreement (this is a document that you signed when you purchased your home that outlines the requirements and restrictions associated with BMR home-ownership). This ratio is typically 90% or 100%.
  4. City Issues Letter - The City will send you a letter that conditionally authorizes your refinance. The letter will outline requirements as well as a list of documents that the City will need to complete its part in your refinance.
  5. Provide Required Documents - Your lender and/or escrow officer should provide the requirements requested in the letter noted in Step 4 as soon as they are available. Once all documents are received, the City will prepare and send instructions to the escrow officer regarding steps to close escrow.
  6. Loan Closing - When the City is in receipt of all needed information and documents, it will prepare and send a Subordination Agreement to the escrow/title company. The agreement will be signed by you (the BMR owner) and a representative from the bank from which you are obtaining your new loan. Note that you will need to pay a fee for the processing of the refinance to the City at this time. This is typically paid out of escrow and accounted for on your closing statements.

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