H.F. 2055 Section 1. Section 16.54, subsection 4, paragraphs a and b, 1 Code 2009, are amended to read as follows: 2 a. The person eligible for the program shall, for financed 3 home purchases that close on or after July 1, 2008, use a 4 lender that participates in the authority’s applicable programs 5 for first-time homebuyers or a lender approved by the authority 6 under subsection 4A . 7 b. If the person eligible for the program is a first-time 8 homebuyer, then, for financed home purchases that close on or 9 after July 1, 2008, the eligible person shall participate, if 10 eligible to participate, in one of the authority’s applicable 11 programs for first-time homebuyers. However, a person eligible 12 for the program may use a lender that does not participate in 13 the authority’s applicable programs for first-time homebuyers 14 if such lender is approved by the authority under subsection 15 4A. 16 Sec. 2. Section 16.54, Code 2009, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 4A. A person eligible for the program 19 may submit an application to the authority for approval of 20 a lender, even if such lender does not participate in the 21 authority’s applicable programs for first-time homebuyers. 22 The authority shall have discretion to approve or disapprove 23 any application under this subsection. The authority shall 24 prescribe a form for such applications. 25 EXPLANATION 26 This bill allows eligible persons for the home ownership 27 assistance program for military members to submit an 28 application for approval of a lender other than those lenders 29 who participate in the Iowa finance authority’s applicable 30 programs for first-time homebuyers. The bill gives the Iowa 31 finance authority discretion to approve or disapprove an 32 application to use an alternative lender. The bill also 33 requires the Iowa finance authority to prescribe a form for 34 such applications. 35 -1- LSB 5546YH (3) 83 md/sc 1/ 1