[Code of Federal Regulations]

[Title 7, Volume 15]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 7CFR3560.67]



[Page 494]

 

                          TITLE 7--AGRICULTURE

 

     CHAPTER XXXV--RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE

 

PART 3560_DIRECT MULTI-FAMILY HOUSING LOANS AND GRANTS--Table of Contents

 

               Subpart B_Direct Loan and Grant Origination

 

Sec. 3560.67  Rates and terms for section 515 loans.



    Rates and terms for farm labor housing loans are found in subpart L 

of this part for Off-Farm and subpart M of this part for On-Farm.

    (a) Interest. Loans will be closed at the lower of the interest rate 

in effect at the time of loan approval or the interest rate that is in 

effect at time of loan closing.

    (b) Interest credit. The Agency will provide interest credit to 

subsidize the interest on the Agency loan to a payment rate of 1 percent 

for all of the Agency's initial and subsequent loans.

    (c) Amortization period and term. (1) Except for manufactured 

housing, loans will be amortized over a period not to exceed the lesser 

of the economic life of the housing being financed or 50 years and paid 

over a term not to exceed 30 years from the date of loan. The Agency may 

make a loan to the borrower to finance the final payment of a loan in 

accordance with Sec. 3560.74.

    (2) Loans for manufactured housing will be amortized and paid over a 

term not to exceed 30 years as specified in Sec. 3560.70(c).