(a) The department shall administer the program.
(b) The board shall adopt rules governing:
(1) the administration of the program;
(2) the making of loans under the program;
(3) the criteria for approving participating mortgage lenders;
(4) the use of insurance on the loans and the homes financed under the program, as considered appropriate by the board to provide additional security for the loans;
(5) the verification of occupancy of the home by the homebuyer as the homebuyer's principal residence; and
(6) the terms of any contract made with any mortgage lender for processing, originating, servicing, or administering the loans.