Iowa Admin. Code r. 265-2.10

Current through Register Vol. 47, No. 11, December 11, 2024

Rule 265-2.10 - Assumption of mortgages

Where such permission is required or contemplated by the mortgage documents, the Iowa finance authority will grant written permission for a subsequent buyer of a home financed by an IFA mortgage to assume the outstanding mortgage loan if all of the conditions established in these rules are met.

(1)Eligible assumptions. The buyer or buyers meet all of the requirements of an eligible mortgagor under IFA guidelines relating to mortgages issued under a particular series of bonds except that no income restrictions shall apply.

(2)Rate of prepayments. The prepayments received by the Iowa finance authority for a given series of mortgages must equal or exceed the rate of prepayments that was anticipated in structuring the principal repayment dates and amounts for that series of bonds. This rule is intended to implement Iowa Code section 16.38.

Iowa Admin. Code r. 265-2.10

Amended by IAB April 1, 2015/Volume XXXVII, Number 20, effective 5/6/2015