Section 764.204 - Rates and terms(a)Rates. The interest rate for Down payment 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 Down payment 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. 72 FR 63298 , Nov. 8, 2007, as amended at 73 FR 74345 , Dec. 8, 2008; 86 FR 43392 , Aug. 9, 2021