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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Dec. 8, 1935)
The OREGON STATESMAN, Salem, Oregon. '. ' 4 , 1- Dealers Speed Home Transformed With FHA Loan y y&aBSMaawFsy y'iywy'ST lWHllJlPl,lwlwT:rWMWWV'Ww.-.:ftml?l , School Group Holds Confab Clarkamag County Council Of Parent-Teachers Hears Program 0 - PAGrj pott ; Use of Credit Am. Ti 1, t. ! V WVjQ i - " , K it i, ; ,' " i - - , . , A . ( Federal Housing Results , Slow But Steady Says County Chairman "Th"' work Federal Homing in Salem and Marlon county has bn, aeeelejated this year as an increasing number of dealers and buyers fully understood the terms which the federal government has made possible on credit In order to facilitate home repair and con. struction," reports Sheldon F. Sackett, chairman of the Marlon eoonty Better Housing committee. "Federal Housing has not seen phenomenal growth in building; rather it has provided means for a slow but steady progress to wards the old days when Salem built a home a day and the con struction business ranked with the automobile trade in the annu- 'mt rpercapita; eenditurlBsffr eal citizens."; Unmortgaged Loans "Most noticeable has been the use of FHA credit under Title I. This part of the housing act. ex piring next April, permits lend ing Institutions to make small, unmortgaged loans, either for house remodeling and improve ment or for, the purchase of home equipment. Gradually the provi sions of Title I have been broad ened until a business man can get equipment for his factory on cre dit terms running over five years. -"Theuse fTitl Ifwhich provides long term, low-rate loans for new home construction in some "instances for. financing of present loans has gone slowly. Lending Institutions are only be ginning to use this facility of FHA.' As they become more fa miliar with' Title II. an Increasing volume of loans will be made and new construction will thereby be forwarded.y . ( ;.; v Dealers Taking ,. ; . Prompt Advantage i , ;The more alert, tbs dealer, the more prompt has been his use of FHA facilities. Many dealers have handled most of their sales this fal through FH.A arid by selling this-, paper,, have provided them selves with, cash ,td handle their turnovers of goods. The terms of the financing, .from the buyer's standpoint; are lower than those AOra4lgtb'Jir4t9, auto coiir cerns ', and are t not excessive, amount. of the loan and time for repayment considered,. "The outlook, for 1936 points to a steady, not spectacular, but sound use of credit for home im provement under both titles of FHA." ' V'uU V- . ' . Da3s in Deadlock On Commissioner WOODBURN , Dec. 7, T ft e Woodbjir Icltjr, council met Tues day night ft the city hall at which time it,jraa decided to purchase a carload of nt pipe for the city water system to be used to replace old steel pipe in the alley from the postoffice south and on West Lincoln, street., i It was lso decided to put in "some 200 feet of two-inch pipe along ' Harrison street, bringing city water service as' far as the Intersection ; of Settlemier and Harrison,' street from where it will -her pined -aeross-Settlemier outside ;tbe . city. Lutz, a resi- dentiputside theltjlljmitapn the Pacific? highway, was given permission to connect a line with one going 'to the Ivan Byers place If he is-willing to share the ex pense of , laying the line under the highway. The matter of whether or not the city should have a new street commissioner' was again brought before the council with a good deal of discussion pro and con Finally motion waa made for ad Journment and resulted In a con tiaued deadlock over the situation until next meeting., ' ?Ii J V J '' Iff - I . ii- tl j '.4-. " , . . . iXy, Wtpi'SWSWW'W" ..?.'.y.-,'.s,-W--"! 1 ! 1 ' . '.'.-,r - !-'--j-lr-:-;-r-:-. JT luii would not know it, but the modern , Spanish bungalow above not so long ago wn the shabby - look ing little houae shown at the right. The transformation requir ed only a few struc tural changes and the application of cement itiicco. is"1'' Change Old Home To New Bungalow Homes throughout the country are being modernized as a result of the liberal financing, plan made available by the National Hous ing Act. Local banks and, other financial institutions approved by the Federal Housing Administra tion are making loans to do this work. Remember, no down payment is necessary, provided the cost-of one single family home project does not exceed $2,000 and you can meet other simple require ments. Y6u pay the money back monthly, according to your' in come. Many homes that have been modernized you would not recog nize now as the same places. Of courge, the structure of. the house must be sound and it must be well located before it la wise to spend much money on improve ments. But If you are satisfied as to these essentials, there is no limit to the many things you can do to bring the house up to date. A new coating of stucco, is one good way to make an old house young again. Or you may use lum ber or brick or some of the other surfacing materials. The architectural style of the house frequently can be complete ly altered with but slight changes to the underlying framework. - Spanish designs are popular in many sections of the country. Be cause of the regular horizontal lines characteristic of this type of architecture, many old houses can be converted to the Spanish type at comparatively' small cost. Members of the FHA underwrit ing staff-have -completed arrange ments for . a series of mortgage clinics to be held in Oregon com munities within the next several weeks. The cost of building a home un der the single mortgage system of FHA can be figured roughly at flO per month per $1,000 of cost. That includes taxes and haz ard insurance. Of the more than 60 FHA dis tricts throughout the country, Oregon ranks ninth in quota per centage of loans reported under the modernization . credit plan. 5 -'UiU' Question of Prospective Builder Of Homes Answered in Detail With Interview with Most of the questions asked by the average applicant for an FHA loan are answered In a statement made to jamieson Parker, state FHA director, Portland, by a suc cessful applicant on "How I Ob tained My FHA Loan." The statement follows: "Yes, .1 certainly 1 was surprised when I found out all about the federal , housing administration program. Of, course. I had heard persons talking about the FHA and the new jlan: for home fin ancing, but I didn't pay much at tention to it. But we decided that this might be an opportune time to build our home, so I went to the FHA office to see about it. Bank Was Helpful "My first surprise was in being informed that the FHA did not make the loans. I was told that banks and other lending agencies made the loans, and that each lending agency must be approved by the FHA before it could parti cipate in the program. After get ing more Information concerning the plan, I went to see my bank er. I was surprised again (in, find ing that the bank was glad to dis cuss myjlans, and-did everything possible to help me. "I was told to have my plans and j specifications prepared by some one competent to do this work, although it was not neces sary that I employ- an architect. It seems that the FHA office has an architectural division, which looks over the planB to see that property standards are met, and also checks up on cost estimates. This seemM-likft Aooi,. tion to me. because ! wouldn't know much about costs. It was going to cost me to get the loan. At this point I discovered that the FHA controls the amounts that may be charged, and they certainly are reasonable. In fact, they are considerably less than I had thought. The cost for title search and recording or fll ing fees would be about $30. Then their initial charge for handling the loan is variable, but cannot exceed 2V4 per cent of the amount of the loan, In the case of new construction. In refinancing Oir 0 . FHA Administrator loan this charge cannot exceed 1 per cent. Cost $3.1.78 Per Month "We figured that our bouse would cost about $4,000, and we expected to pay $500 for the lot. The bank told us that they could loan up to 80 per cent of the ap praised value of the house and lot, which would be $3,600 in our case. We put some of our savings into the deal, and applied for a loan of $3,000 to run for 20 years. So the bank went to -work then to figure 'Just how much we would have to pay each month. We esti mated our taxes at $96 a year and hazard insurance at $12 a year, and here are the figures: "1. Interest and principal re duction, $19.80. "2. Taxes (112 of annual to tal), S. 00. "3. Hazard insurance (112 of annual total), $1.00. ..4 service charge ( of 1 per cent on monthly balance), $1.23. "5. Mortgage Insurance of 1 per cent of loan), $1.25. "Total . m o n't h 1 y payment, $31.28. "You can see that the FHA plan is complete in everyrespect, be cause each monthly payment in cludes all fixed charges against the property. The small periodic payment for taxes dnd those other things are held by the bank, and when they become due, there is the money already available. And you will notice that the total is only $31.28 a month. Just think of it, here we are paying $40 a month in rent, when for a smaller amount we can be buying a home. IPiti , i m. Pralma , f opjSH A ' "I guess you understand that. when the loan is made, an amount Wulvalertt. la' ttfe-awSeffnes and hazard insurance is left with the lending agency, so that, with the monthly payments for these things, there will be a sufficient amount available when they first become due. "I have nothing but praise for this federal housing admlnistra tion program, and I have found many of my friends very much in tereste'd. They probably will de cide to build .hjtHse real soon, I wu. i. annum iorgoi 10 mention I . that the FHA really is an insur mm MOLALLA. Dec 7. Twenty six Parent-Teacher organizations were represented at a quarterly meeting of tho Clackamas county council here Wednesday at the high school. Over 100 represen tatives attended the morning and afternoon sessions. Mrs. M. J. Brown, Gladstone, president of the council, presided. State offi cers who were present were Mrs. Q. C. English, parliamentarian, and Mrs. F. W. Blum, recording secretary, both of Portland. The council will meet next in Milwau kie In February. During the afternoon forum hour, Mrs. Kenneth Hendricks, Gladstone, spoke on "Character and Spiritual Training." Mrs. J. B. Campbell, Oregon City, spoke on "Citizenship." Mrs. F. W. Blum discussed Juvenjle delin quency, and Mrs. Katherine Mc Rae, county school superinten dent, spoke on legislation. Ijeart Study Session Leaders of the morning confer ence sessions were Mrs. E. W. Kern, Jennings Lodge, member ship; Mrs. F. W. Blum, Portland, publicity; Mrs. Shirley Buck, Mil waukie, and Mrs. J. W. Ingersoll. Gladstone, health; Mrs. Carl XU&eiir. OregQn..Clty. &Lujdjrcluhs . Mrs. F. C. Inkster, Oswego. Boy Scouts; Mrs. Roy Woodward. Oregon City, Camp Fire Girls; and Mrs. O. O. Bohl. Oak Grove. 4-H clubs. Mrs. J. C. English led the conference for presidents, vice presidents and chairmen of hos pitality, program and publicity committees. Mrs. C. I. Lands- verk, secretary of the county council, led the conference for secretaries, treasurers, finance and budget committee chairmen. In charge of all these confesfhees was Mrs. J. R. Guynes, Oregon City. . r The Molalla Parent-Teachers association as the hostess group had the following committee look ing after the welfare of the guests; Mrs. Forrest Dunton, chairman, Mrs. Willis Dunton, Mrs. Sidney Powers, Mrs. George Blatchford, and Mrs. J. W. Moore, president of the Molalla P.-T. A. Lunch was served by the Metho dist Ladies' Aid in the church basement. A total of 125 per sons was served. Pupils on Honor Roll At Swegle School Past Month Arc Announced SWEGLE, Dec. 7 Those on the honor roll this month are: Harold Smith, first grade; Louis Meyer, A'Delma Jane Lake, John nie Carothers, Luella Dalke, sec ond; Dorothy Bond, Irene Size more, Pauline Sizemore, third; Gladys Dalke, Florence Dalke, Barbara Buntin, fourth ; Marion Thrasher, Fritz Carothers, fifth: Dorothy Dalke, Sarah Dick, Edith Stark, sixth; Laura Dalke, Lor alne Meyers, Einy Sizemore, Ruby West, Billie Carothers, Jean Car others, seventh; Floyd Brodhag en, Carol Schaffer, Virginia Car others, eighth. ance conipany-and I. understand.-. that there is a good possibility that I will get back most of the TOSney'TT surance premiums. They tell me, even with. a reasonable amount of losses, the insurance fund that is built up will be large enough to pay off the balance due on my loan at the end fo 17 years. What other plan even offers sue a pos sibility? "I can't find a single thing about this program that isn't to my advantage. You certainly can count on me to praise the entire work of the federal housing ad, ministration." HOME SERVICE CO. Everything For The BUILDER 'L
