Iowa Admin. Code r. 265-45.5

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

Rule 265-45.5 - Eligible financing

(1)Lender participation agreement. Linked deposits shall be made pursuant to a lender participation agreement to be created by the authority. If the mortgage loan is to be made by a financial institution, the lender participation agreement shall be between the authority and the financial institution. If the mortgage loan is to be made by a lender, the lender participation agreement shall be between the authority, the lender, and a financial institution.

(2)Eligible loans. To be eligible for a linked deposit under the program, a mortgage loan shall meet all of the following requirements:

a. The mortgage loan must be for the purchase of a manufactured home as the borrower's primary residence; refinancing is not eligible for the program;

b. The manufactured home must be sited on leased land located in the state of Iowa;

c. The term of the mortgage loan shall not exceed 30 years;

d. The mortgage loan shall be fully amortized;

e. The terms of the mortgage loan shall contain no prepayment penalties;

f. The interest rate payable on the mortgage loan shall not exceed 9 percent APR;

g. Fees charged by the financial institution or lender to cover its costs of originating the mortgage loan (closing fees, origination fees, etc.) shall, in the aggregate, not exceed 1 percent of the principal mortgage loan amount;

h. Closing agent/settlement fees paid to third-party closers, if any, shall not exceed $500;

i. Customary and reasonable closing costs shall be allowed; and

j. The financial institution or lender shall comply with all applicable fair lending laws and regulations.

Iowa Admin. Code r. 265-45.5

Adopted by IAB December 5, 2018/Volume XLI, Number 12, effective 1/9/2019