The OREGON STATESMAN, Salem, Oregon.
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Dealers Speed
Home Transformed With FHA Loan
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School Group
Holds Confab
Clarkamag County Council
Of Parent-Teachers
Hears Program
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PAGrj pott ;
Use of Credit
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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., '
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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
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