Iowa Administrative Code
Agency 265 - Iowa Finance Authority
Chapter 45 - Manufactured Housing Program Fund
Rule 265-45.5 - Eligible Financing
Universal Citation: IA Admin Code 265-45.5
Current through Register Vol. 47, No. 6, September 18, 2024
(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.
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