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Standardized Subordinate Lien Documents


To help first-time homebuyers overcome a lack of down payment funds, state and local housing finance agencies (HFAs), local, county and state government agencies, nonprofits and employers offer down payment assistance (DPA) programs. As programs vary across the country, DPA providers have historically used agency-specific subordinate lien documents with non-standard language; however, these documents may not always provide sufficient detail relating to the DPA program and repayment terms.

To facilitate easier and greater use of DPA programs, Freddie Mac led an effort to draft and deliver standardized subordinate lien documents for subordinate mortgages offered by DPA providers. The goal of this initiative is to bring market efficiencies and cost savings to HFAs, their participating lenders and DPA providers nationwide. 

The subordinate lien documents provided on this site have been reviewed and agreed to by Fannie Mae, thereby creating one standardized set of documents approved by Freddie Mac and Fannie Mae (the GSEs) for use by any DPA provider. Users of the standardized subordinate lien documents should also access the website of the state, local or other municipal DPA provider to ensure they are consistently using the most current subordinate lien documents.

NOTE: if a user of the standardized subordinate lien documents makes any changes to the documents other than the Subordinate Authorized Changes listed on this website, the Freddie Mac/Fannie Mae tagline at the bottom of the document must be removed. Although Freddie Mac was primarily responsible for creating these documents, Freddie Mac will not purchase these subordinate liens.

Standardized Subordinate Lien Documents: Available States

The standardized subordinate lien documents are available for use in the following states: Alabama, Arizona, Arkansas, California, Colorado, Connecticut, Florida, Idaho, Illinois, Iowa, Massachusetts, Minnesota, Nebraska, New Mexico, South Dakota, Tennessee, Utah, Virginia and Washington.

Standardized Subordinate Lien Documents: Additional States and Territories

Freddie Mac is in the process of creating standardized subordinate lien documents for the remaining states and territories. We will update this webpage as those additional documents become available.