Refinancing Section 236 Properties – IRP is Maintained
For Fannie Mae to consider the cash flow from an IRPIRPInterest Reduction Payment , the BorrowerBorrowerPerson who is the obligor under the Note. must decouple the IRPIRPInterest Reduction Payment from the existing Section 236 note and mortgage by
- prepaying the Section 236 Loan, and
- having the IRPIRPInterest Reduction Payment transferred to a new Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents or a mortgage debt obligation with a Fannie Mae credit enhancement. (which will be then considered a Section 236 Loan for purposes of continuing the IRPIRPInterest Reduction Payment ).