CFR > Title 7 - Agriculture > SUBTITLE B—Regulations of the Department of Agriculture > CHAPTER XXXV—RURAL HOUSING SERVICE, DEPARTMENT OF AGRICULTURE (parts 3550 to 3575) > PART 3550—DIRECT SINGLE FAMILY HOUSING LOANS AND GRANTS > SUBPART C—Section 504 Origination and Section 306C Water and Waste Disposal Grants (§3550.101 to §3550.150) > 3550.113—Rates and terms (loans only).

3550.113—Rates and terms (loans only).

(a) Interest rate. The interest rate for all section 504 loans will be 1 percent.
(b) Loan term. The repayment period for the loan should generally be as short as possible based on the applicant's repayment ability, and may never exceed 20 years; however loans made in combination with grants must have a term of 20 years.