April 21, 2026

The Iowa Finance Authority (IFA) is issuing the following clarification to ensure consistent application of its Settlement & Financing policies across all participating lenders. This clarification follows IFA’s review of lender compensation practices, which found that prior policy language allowed for inconsistent interpretation. The clarified language is intended to eliminate ambiguity and provide clear, uniform guidance going forward.

All lender compensation, including origination, processing, underwriting, and any other lender administrative fees, must be included within these limits. No lender fees may be charged above these amounts, and fees may not be itemized, shifted, or otherwise structured to exceed them. If Iowa Code imposes a more restrictive limitation, the more restrictive requirement applies. This clarification applies to IFA reservations dated on or after April 27, 2026. Loans reserved prior to that date will continue to be reviewed under the policy language in effect at the time of reservation. 

IFA also recognizes and appreciates the many participating lenders who continue to prioritize affordability for Iowa homebuyers, including those who charge minimal fees or do not charge an origination fee. These practices reflect a strong shared commitment to making homeownership more accessible.

Thank you for your continued partnership. Please direct any questions to the Homeownership team.