Iowa Admin. Code r. 265-27.3 - Application procedure and determination of eligibility
(1)
Prior approval. Whether
the purchase of a qualified home is by mortgage financing or cash, prior
approval of the assistance by the authority is required. Approval of the
request will include supporting document review by the authority and a
determination of the service member's eligibility by the Iowa department of
veterans affairs.
(2)
Financed home purchases.
a.
In the case of the purchase of a qualified home that is to be financed, the
eligible service member must apply for assistance under the program through a
participating or facilitating lender . If the service member qualifies for one
of the authority's home buyer mortgage programs, the mortgage financing
provided shall be a qualified mortgage . Service members who are not eligible
for one of the authority's home buyer mortgage programs and are not purchasing
on a cash basis may use any permanent financing available to them.
b. To apply for the military assistance, the
eligible service member shall provide the participating or facilitating lender
with the status documentation and all necessary program documents.
c. Once the lender has received all of the
information required by this subrule, the lender shall transmit copies of the
necessary documentation to the authority.
(3)
Cash home purchases. In
the case of a cash purchase of a qualified home , the eligible service member
shall provide directly to the authority status documentation , the purchase
agreement with any addenda or attachments for a primary residence, and a title
guaranty commitment.
(4)
Referral of status documentation to Iowa department of veterans
affairs. The authority shall submit the status documentation , upon
receipt, to the Iowa department of veterans affairs for verification that the
applicant is an eligible service member . The Iowa department of veterans
affairs shall be the final authority as to whether an applicant is an eligible
service member .
(5)
Notice
of MHOA approval. Upon confirmation of the applicant's eligibility by
the Iowa department of veterans affairs and the authority, the authority shall
notify the lender, or eligible service member in the case of a cash purchase,
that the MHOA application has been approved.
(6)
Gaps in funding. In
cases where the military assistance funds are unavailable during the home
purchase process, MHOA requests for approval may be placed on a waiting list.
When funds are again available and the home purchase closed without the benefit
of military assistance funds being applied toward closing costs or down
payment, the proceeds of the assistance shall be paid (1) directly to the
participating lender or servicing lender to be applied toward the qualified
mortgage loan's principal balance, or (2) if the qualified home was purchased
pursuant to a cash purchase transaction, directly to the eligible service
member . The authority will notify the applicant that the assistance will be
applied to the principal balance.
(7)
Approval process for facilitating
lender status. Pursuant to Iowa Code section
16.54(5), an
Iowa-regulated or federally regulated lender with a physical location in the
state of Iowa may submit an application to the authority for approval, even if
such lender does not participate in the authority's home ownership programs for
home buyers. The approval to be a facilitating lender shall be valid for one
year, and lenders annually will need to submit an application, including the
application fee. The application fee may not be charged in part or in full to a
service member or to a property seller.
Notes
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