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Newspaper
High Point Enterprise
Location
High Point, North Carolina, United States of America
Date
Mar 06, 1938
Page
16
A growing family can benefit from taking an older house offering more space for less money than a small new home. The FHA modernization loan may finance repairs and updates. Large dining rooms can be reconfigured into a single living area by removing partitions and creating defined dining spaces with low bookcases as room dividers.
The FHA plan allows altering house exteriors to remove front porches, increasing light and air in rooms facing them. Funds up to 10 000 may be provided by a private financial institution for modernization, with the FHA insuring 10 percent of the total advances to cover losses.
The Federal Housing Administration covers heating systems including stokers oil burners coal gas and electric furnaces when permanent parts of real property along with plumbing and wiring systems alterations or improvements. Purchases and installations may be financed under the Property Improvement Credit Plan.
The Federal Housing Administration states that lowering the down payment to 10 percent for insured 90 percent mortgages up to 5400 will not relax existing regulations. Owner-occupancy, plan approval before construction, and strict standards remain, safeguarding lenders borrowers and national housing aims.
The FHA plans extend amortization from 20 to 25 years for lower priced homes and cut down required down payments from 20 to 10 percent to expand home ownership. Lenders and the administration must tighten precautions to protect the mutual mortgage insurance fund, which covers more than 265 000 mortgages totaling about 1.075 billion dollars and shows minimal losses to date.
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