3.7.23.2 Defeasance Costs Associated with Underlying Bond Financing

A. Defeasance costs associated with underlying bond financing, yield maintenance, swap termination fees, or costs to satisfy similar derivative instruments will only be recognized in the eligible cost basis up to 10% of the requested FHA loan amount. Defeasance costs greater than 10% of the proposed FHA insured loan amount may only be paid from equity-out when the loan amount is less than or equal to 80% LTV.