To finance the purchase, construction, remodeling, improvement, or rehabilitation of housing developments for residential housing designed and planned for individuals and families of low and very low income and families of moderate income, the department, on the terms and conditions stated in this chapter, may:
(1) make, commit to make, and participate in the making of mortgage loans, including federally insured loans to housing sponsors; and
(2) make temporary loans and advances in anticipation of permanent mortgage loans.