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).