(a) Rates.
The interest rate for Downpayment loans will be the regular direct FO rate minus 4 percent, but in no case less than 1.5 percent.
(b) Terms.
(1)
The Agency schedules repayment of Downpayment loans in equal, annual installments over a term not to exceed 20 years.
(2)
The non-Agency financing must have an amortization period of at least 30 years and cannot have a balloon payment due within the first 20 years of the loan.
Code of Federal Regulations
[72 FR 63298, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008]