A Downpayment loan must:
(a) Be secured in accordance with Sec. Sec. 764.103 through 764.106;
(b) Be secured by a lien on the property being acquired with the loan funds and junior only to the party financing the balance of the purchase price. [72 FR 63298, Nov. 8, 2007, as amended at 73 FR 74345, Dec. 8, 2008] Sec. Sec. 764.206-764.230 [Reserved]