265—45.5(16) Eligible financing.

1. 45.5(1)  Lender participation agreement. Linked deposits are 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 is between the authority and the financial institution. If the mortgage loan is to be made by a lender, the lender participation agreement is between the authority, the lender, and a financial institution.

2. 45.5(2)  Eligible loans. To be eligible for a linked deposit under the program, a mortgage loan is to meet all of the following:

   1. a. The mortgage loan is only for the purchase of a manufactured home as the borrower’s primary residence; refinancing is not eligible for the program;
   2. b. The manufactured home is sited on leased land located in the state of Iowa;
   3. c. The term of the mortgage loan is not to exceed 30 years;
   4. d. The mortgage loan is fully amortized;
   5. e. The terms of the mortgage loan contain no prepayment penalties;
   6. f. The interest rate payable on the mortgage loan is not to exceed 9 percent APR;
   7. g. Fees charged by the financial institution or lender to cover its costs of originating the mortgage loan (closing fees, origination fees, etc.) are, in the aggregate, not to exceed 1 percent of the principal mortgage loan amount;
   8. h. Closing agent or settlement fees paid to third-party closers, if any, shall not exceed $500;
   9. i. Customary and reasonable closing costs are allowed; and
   10. j. The financial institution or lender is to comply with all applicable fair lending laws and regulations.

[ARC 0178D, IAB 4/1/26, effective 5/6/26]