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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Jan. 22, 1936)
PAGE TEN MEDFORD MAIL TRIBUNE. MEDFOKD. OREfiON. "WEDNESDAY, JANUARY 22, 1936 I f . 1 I I i u . ' u Mr., Mrs. am Pinneo Pose for Special Photos The illustrated "shopping tour" which features tht special Better Housing Mctlon of today' Mall-Tribune, was made possible by the o o Deration of Mr. and Mrs. Harry A. Pinneo, firm believers In and en . thuslastlc boosters of the Bettor Housing program. Their Journey IngB with the cam eraman took them Into many Inter esting Medford shops and display rooms, where they found both Inter est and pleasure viewing and hearing about the great variety of things that are lndlspenslble to the home of to day, and which are easily obtained through the convenient Moderniza tion Credit Plan of FHA. What young married couple would not ftnd In LOANS AVAILABLE EAT ON LARGE SCALE Progressive business men who rec- - ognlee opportunity when It knocks ; at their doors, are taking advantage ; of the new amendment to the Nat ' lonal Housing act, according to r Jamleson Parker, director of the 1 Oregon district of the Federal Hous ing administration. In an Interview - he aald: "This amendment, which makes It possible for them to borrow up to $50,000 to modernize their business ' property, has opmed the way for business men using this credit plan : to regenerate their stores, remodel factories. Install new equipment and bring their properties up to date In many ways. "It Is an opportunity because these loans, when made by approved lend ing agencies, are Insured by the Fed eral Housing administration, and are repayable In reasonable, equal monthly Installments, and can run for as long as five years. Make Money by Spending . "Business men all over the country are making money by spending It. They are Increasing their profits by modernizing their property, and In many cases they are using the FHA credit plan to help finance these Im provements. "Through a better housing pro gram for Medford administered by local business leaders with full co operation of the Federal Housing ad ministration, many thousands of dol lars In new business for the building and allied trndes can be generated thla season. The underlying purpose of an adequate program for the Medford area would be Initiating needed building activity by develop ing a strong desire for better housing conditions, and pointing out simple methods for accomplishing this, thereby creating new customers for the business men of Medford, and Increasing their net profits, as well as improving the local employment situation, reviving trade and bringing Increased confidence, happiness and prosperity to the entire county. 4 TWO-DAY SESSION IS SCHEDULED FOR JANUARY 23-24 (Continued from Page Seven) Ban well, secretary of the Jackson County Chamber of Commerce. All phases of the housing program will be explnlned and freely dls oussed. Those Interested In repairing or modernizing their homes or busi ness prop., -ties will be informed how to proceed to obtain an FHA Insured lean under the Modernization Credit plan. There will be a detailed explana tion of the operation of the complete home financing plan, under the pro visions of which any responsible cit izen may obtain funds with which to build or buy a home or refinance a mortgnge on existing proporty. Builders and building material ana equipment dealers will be shown how they may cooperate advantageously In the building of homes under the FHA plan and equipping them with modern appliances. The conference will be open to everyone in the community and In addition to supplying Information to those Interested In the program, members of the visiting delegation will asnlst with the preparation of applications for mortgage insurance, thus providing a practical demon st ration of the operation of the plan which will be helpful to lenders an Well as borrowers. "The Better Housing program already has restored to circulation In Jackson county a large amount of money for which there appeared to be no aafe outlet prior to the passage of the National Houalng act, It was explained In a statement Is- j sued by Jamleson Parker, state FHA director. 'But the possibilities for additional sprinting under the con venient arrangement, provided by FHA are almost without limit. We want everyone to know about the program so that thow who need the aaststanre made available by its friendly terms, msy take full advant age or the opportunity to obtain it. "A conservative estimate places ihe volume of modernization loans ts ued In the Medford district at mote than 100.000. The money haa been spent In Medford to Improve homes end stores and pure -haa modern 4HiJ4 DDiiAui,c and to,uipinAaC terest and pleasure In such a Jaunt? Mr. and Mrs. Pinneo came to Med ford three years ago from Alturso, Cal., and In that short time they have won a place of high esteem In the community. They are active soc ially and always on the alert to pro mote the progress of their home com munity. Pinneo Is area sal earns n for the Standard Oil company, with head quarters In Medford. The Job takes him over a large territory and has made It possible for him to form an estimate of the Importance of the better housing movement. He orgsnlzed the Medford 30-80 club and was the club's first presi dent, He attended Stanford university at Palo Alto. MEDFORD'S FHA L HELP (Continued from Page Seven) Recent months have brought large additions to the volume of private capital seeking Investment In insured home mortgages In Oregon and there has been big Increases also in the number of cooperating institutions In other sections of the country. There are at present more than 4,000 banks and other lending Institutions par ticipating In the complete home fi nancing program of FHA. This Is a marked change since the Insured mortgage system of the Fed eral Housing administration went Into operation early last year. At that time financial Institutions In certain sections looked realstantly on this type of Investment, due, primar ily, to the possibility of their tying up large sums for long periods, with out the facilities for speedy market ing If occasion should arise. The first of the mortgages were negotiated one at a time and the approved mortgages watched their course through the Insuring office with Interest. One was out of the way before another application was filed. Presently the Institutions, hav ing been Impressed with the care with 1 which the applications were handled by the Federal Housing ad ministration, made definite allot ments of funds for such investment and loans were made with greater speed and assurance. The condition continued until tho Institutions began to realise that there was a ready sale for Insured mortgages. Several life lnsuranco companies announced their Intention of buying them. One purchased i block of el 00.000. At least one brok erage concern ran advertisements in the newspapers offering to buy In sured mortgagos at a slight discount and offering to sell them at a sub stantlnl premium. A deal was car ried through In New York involving the sale of 9120.000 worth on this basis. The obvious demand for Insured mortgagee made tho financial Instl tutlona realize more than ever their value as an Investment which could be sold In short order If the raising or funds became necessary. In con sequence, particularly In the New York and New Jersey areas, they have Informed Federal Housing of flclals that they are ready to nego tiate such mortgages in volume, They have announced they have additional funds, chiefly In amounts of 9100, 000 and iloo.OOO for this type of Investment. Mortgages Have Liquidity There are now five ways an ap proved financial Institution desiring to Invest In Insured mortgagee may raise cash on them if It becomes necessary : 1. They may sell the mortgages to other lending Institutions, such as banks, trust companies, and building and loan associations, that have been approved as mortgagees. 3. They may sell them to trust funds held or administered by an approved banking Institution acting in a fiduciary capacity. 3. They may sell them to approved life, fire, marine and casualty In surance companies, which have fac ilities for servicing, 4. They may sell them without re course to tho Reconstruction Finance corporation mortgage company. o. They may use them as collateral for loans from Federal Home Loan banks, the borrowing to be limited to 00 per cent of the face value. The disposition on the part of moBt banks la. however, to hold In their own portfolios the insured mortgages they have made. Thla Is due to the fact that the yield is bel ter and the Investment sounder than that of many other flrst-claas secur ities. While the Federal Housing ad ministration does not attempt to llx a minimum Interest rate on Insured mortgages, it has estaiulahed a max imum of A per cent. In srctions of the country where the rate ordinar ily haa hern more than that, the fl per cent now Is customary. In ad dition to the Interest, the lending Institution may collect maximum service charge of half of l per cent. on decreasing balances The Federal Homing administra tion officials have been itiaiifird par ticular at the attitude of financial Institutions toward the rtk-ratlng procedure act up Tor negotiating the mortgages. A sincere effort haa been made to fix a proper valuation on the properties Involved and the abil ity of the borrowers to carry out their contracts, and this has been rrcoBnlred by the Institutions to an extent that many of them are will ing to Invent without Investigation of their own. Housing administration has gone into the details completely. I nr hiding Inspection and appmlsnl of the uiopwtv, and. the ability of. Economical, SiU H O WLtL Convenient A little m IS00.OO down and $K.Z3 per month which Includes principal. Interest, taxes and Insur ance, pays for a f.ano new home under the Federal Housing Administration plan. ARCHITECTS ARE TO OFFICIALS AVER Consult your architect If you want to avoid mistakes In planning the modernisation of your home, Fed eral Housing administration officials advise. They emphastzo that the most of fectlve and auccessful modernization projects are the result of careful planning and attention to detail. They point out that a moderniza tion Job, whether It be the trans formation of a single room or an en tire house requires much thought and a knowledge of building prob lems, The wise modernizes housing offlclala aay, consults an architect In such cases, on problems of adequate lighting, placement of wlndowa and electrical outlets, proper means of ventilation, heating and plumbing and other highly specialised depart menu of the business of building or modernising with the greatest effic iency. In their study of the problem. members of the housing organisation have consulted with leading archi tects In many sections of the coun try and obtained a great variety of helpful hints from them. Some of these suggestions are passed on to Oregon home owners and prospective home owners in the following state ment; I The possibilities for modernization j are evident in every city, town or1 village. In almost any community there are many large old homes con veniently located but too big and lacking In conveniences to be rented easily. Even when rented, they fre quently bring little more return than an amount sufficient to pay taxes and upkeep. Often such structures lend themselves admirably to conver sion into apartments. Many average two-story houses with 8 or 10 rooms can be readily transformed Into sev eral small apartments, two or more located In the basement, on the first adn second floors and In the attic. The second story of a medium sized houae can be made Into an attractive apartment with little more alterations besides a kitchen with proper fixtures and flooring. Except for possible atalrway additions, the full arrangement will require little change. With equal ease the first floor also can be made Into an apart ment. Unfinished attics, valuable space that Is wasted In hundretls of houses, require more attention. With Insula tion, plumbing, wiring, kitchen and bathroom fist urea, partitions and in terior finish that portion of the house can also be made llvnhle and also a source of revenue. the borrower to pay the debt, is suf ficient. A further consideration that haa made the Insured mortgage attrac tive to financial institutions Is the fact that the comptroller of the cur rency and the state banking author ities of 33 states have parsed out the word that the Insured mortgage are ; to b tiaNw-d by bank examiner! as tuloil asset Build with lumber and build Oregon. The mighty for-' ests of Oregon are the natural heritage of the North west Empire. For ages lumber has been man's own material with which to provide shelter. It has beauty, strength and durability. From it can be created hand some and lasting homes of almost every lovely design. And above all, lumber' is economical from every stand point. Take advantage of the low prices 'available build now and build of lumber! Housing Program Brings Oregon Farmers Benefit Oregon farmers, like those of other districts throughout the country, are finding the Modernization Credit Plan of the Federal Housing Admin istration very helpful to inem In making needed farm Improvements. Loans are obtainable In amounts up to $3,000 and are repayable on seas onal Installments over a term of years, not exceeding five years. The months of September and October set a record for farmer par ticipation In the program, accordli.g to figures revealed by the FHA heau quarters office In Washington. D. C. And as the year closed, it was esti mated that the farmers throughout tho nation wore borrowing up war. Is. of 1,000,000 monthly. California farmers are leading tht; states in the number and volume cf credit transactions. New York Is sec ond on the list and Oregon Is a veiy active participant. A department of agriculture sur vey revealed that out of every 100 farm houses, probably 60 are under the desired standard of Uvabtltty: that 15 need new foundations; 15 to 30, new roofs; 10 to 15. new floors; 10, new walls; and a largo number lack running water and bath facili ties. Under this plan, the money for such Improvements - Is available j through local financial Institutions aa a character loan, payable by farm ing-Income seasons over a period of 3. and In certain cases, ft years. OBTAINING FHA E (Continued from Page Seven) Ing or filing fees would be about ;10. Then their Initial charge for hand ling the loan is variable, but cannot exceed yt4 per cent of the amount of the loan In the case of new run atructlon. In refinancing a loan this charge cannot exceed 1 per cent. Cost 933.78 Per Month "We figured that our house would cost about 4.000. and we expect d to pay 9500 for the lot. The bans told us that they could loan tip to 80 per cent of the appraised value of the house and lot, which wou'd be J.soo In our case. We put some of our savings Into h deal, and applied for a loan of 3.000 to run for 20 years. So the bank went to aors then to figure lust how much wc would have to pay each month. estlmated our taxes at S1J0 ye.ir year and hazard Insurance at 18 and here are the figures: "l. Interest and principal reduc- tlon. 19 80. "9. Taxes (1-12 of annual totah 10. "3. Hazard Insurance (1-13 of an nual total), l 50. -4. Service charge of 1 per cent on monthly balance 1 1 a.v 'ft. Mortpag' per cent of K insurance (i, of I loan), US, Here Is a brief outline of the pro cedure : 1. A modernization loan Is solely for the purpose of repairing, alter ing, or improving the farm home barn, silo, shop, store, or other build ings (with deepening or digging wells petmlssable) . Diversion of the money to any other purpose is pro hibited. 2. The loan cannot be for less than 50 or for more than 2000. In addition the borrower must have a regular source of income which wlli permit him to make the payments without difficulty. 3. The loans can be made for a term up to 3 years (5 years in spec ial cases), but may be paid In full earlier than the maturity date If the borrower desires. 4. Maximum charges, including in terest and all fees, cannot exceed an amount equivalent to $b discount per year for loo original face amount of the note. Prospective purchaser flies an ap plication showing his financial con ditions, sources and amount of in come and other Information neces sary to determine his ability to re pay the loan. If the improvements are considered advisable, the lending Institution can advance the money on the personal note of the applicant. No endorsers or consigners are required, and no mortgage or collateral secrulty Is necessary unless state laws or bank offlclala demand It. ' "Total monthly payments. 33.78. "You csn see that the FHA plsn Is complete in every respect, be cause each monthly payment in cludes all fixed charges against he property. The small periodic payment for taxes and those other things ate held by the bank, and when they become due, there Is the money al ready available. And you will notice that the total is only 933.78 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. rrnle for I'll A "I guess you understand that, when the loan Is made, an amount equhalent to the scented taxes 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, lor this federal housing administration program, and I have found many of my friends very much Interested They probably Kill decide to build a house real soon, too. 1 almost for- e;got to mention that the FHA really la an Insurance company-, and 1 un derstand that there is a good pos sibility that 1 will get beck most of the money l pay in for mortgage in surance premiums. They tell me that, even with a reasonable amount of lows, the Insurance fund that Is built up will be targe enough to pay off the balance due on my loan at the end of 17 twirs. What other plan even offers such a potwiiy? "I can't find a smsJe thing about Uii iHOfciSiii that uut to mj ad vantage. You certainly can count on me to praise the entire work of the federal housing administration." IMPROVEMENT SEEN , IN BUILDING TYPE PORTLAND. The antlcipted build ing surge of 1036 and those that fol low In the years ahead, will be mark ed by style Improvements, greater convenience and efficiency In the home, more durable construction and stricter adherence to neighborhood Ideals. HOUSING AND AUTOS TO HEAD 1936 RISE PORTLAND. Reports received from various sections of the country Indi cate quite general agreement among industrial leaders and economists that housing and the auto industry will lead the 1936 revival. Estimates of home building gains this year range from 50 per cent upward. Keep Your Home In Good Repair Keep up the repairs on your home, and you keep up it value.. A prospective buyer would hardly react fa vorably to a leaky roof, falling eaves, or the conspicuous absence of paint and plaster. Our Modernisation Loans are for the purpose of assist ing home owners finance repairing and remodeling on an easy, long-term payment plan. Loans $50 to $2000 Repayment, Monthly Basis Period, Three Yeari Reasonable Interest Charges Purposes: Repairing and Remodeling For further information kindly refer your problems to representatives of this bank Geo. T. Frey, Manager, palght L. Houghton, ,t. Mgr. McMlforri Ilraiich of tho United Stuivs XjUioiml Itnnk of Vortland Hrtd OKct: PortUnd. Orrtoa USE ALL SPACE IS FHA SLOGAN; E Housing Officials Urge Fam ilies to Make Most of Op portunities of Home Life Ways Are Suggested "Make the whole bouse look liv able," is a modernization slogan be ing brought to the attention of home owners. Analysis of a typical homo by the Federal Housing administra tion reveals a surprising amount of unusual space for which the owner paid good money In the original In vestment and upon which be la still expending money in form of taxes, insurance, upkeep and similar Items. With expenditure of a compara tively small additional sum, the analysis shows, the home owner can utilize these waste spaces and Justify the original Investment as well as the coat of modernization.. Where tho owner has no ready caah available for such work, he can apply to a bank or other lending Institution for a modernization loan Insured by the Federal Housing administration, and pay It back In monthly installments. Lighting, Heat Needed Basements, often dark and damp and partially used, can usually oe modernized Into livable, useful quar ters. Heating and other service units can be relocated to release the maxi mum amount of space. Floors and walls can be repaired, ceilings in stalled, and the walls made damp proof. Adequate light, heat and ven tilation can be provided. Then a few partitions and a little paint will make possible a serviceable fruit and vegetable storage room, a modern home workshop, an efficient laundry and drying room, a basement toilet, a den, library, recreation or chil dren's playroom. Living quarters of many homes are often antiquated In design and ar rangements of space, especially when viewed In the light of modern plumb ing, fighting, heating and built-in equipment. Partitions Can Go - The old-fashioned parlor, used only for company and funerals, no longer is considered either necessary or de sirable. Likewise, halls, pantries, kitchens, dining and other rooms are often of Inefficient size and shape. Ohanglng of partitions often results in saving In work, making It pos sible to obtain better light and ven tilation, and provides space needed for a larger room, or an additional bedroom, closet, toilet, bathroom or built-in equipment. " The' attic Is another portion of the home which, at little expense, can be made into two or more liv able rooms, with a bathroom, by fin ishing the floor. Installing a few par titions and covering the underside of the rafters with Insulating board, plywood or plaster. LIFE INSURANCE AID TO HOUSING PROGRAM PORTLAND. The complete home financing plan of FHA has been aided greatly by the action of a number of leading life Insurance companies In making their funds available for In vestment in home mortgages insured by the housing organization. APPLIANCE SALES UNDERFHA PLAN Study of Modernization Loans Made in Oregon Reveals Wide Variety of Uses for Insured Credit Aggressive selling of modern hoina appliances under the Modernization Credit plan of the Federal Housing administration has supplied much of the activity which has marked the progress of that phase of the better housing program in recent weeks, according to Jamleson Parker, state FHA director. Oregon business concerns. In steadily increasing numbers, he stated, are finding the Modernization Credit plan a safe and convenient medium for the expansion of sales of eligible borne equipment. Gain In volume xf such sales has almost offset the seasonal decrease In home repairs nd modernization and it was stated that a large part of the heavy holiday trade throughout the state was financed with credit Insured by FHA. A report of Oregon operations, cov ering all transactions under the Mod ernization Credit plan up to January 11, revealed that 11,807 loans had been Issued In amounts under (3.000 for property Improvements and for the purchase of modern household appliances and equipment. The loans totaled S3, 318,806. An additional 100.000 had been loaned up to that time In amounts over 2,000, for the improvement of Income properties and for the pur chase of eligible machinery and equipment. It Is estimated that more than 100,000 of modernization credit was distributed In the Medford area. At least five times that amount was spent In cash for repairs and im provements as a direct result of the better housing program, it is believed by FHA officials. Effectiveness of selling methods employed by equipment dealers co operating with the Federal Housing administration'' was reflected In a survey of Oregon loans, Parker stat ed. Loans for the purchase of gas appliances accounted for a large vol ume of reported transactions. . The list Included a wide range of gas stoves, refrigerators, hot water heat ers and furnaces. Building repair Jobs represented 17.4 per cent of the total in number and 33.8 In volume, the Jobs, averag ing approximately $445. Roofing Jobs averaged $164 and accounted for 11.9 per cent of the Jobs. Loans for - the purchase of washers and ironers ranked in fourth place, with a 9.4 rating. Painting Jobs figured prominently in last year's activities, and paint sales were at high level throughout the state, the result of whole-hearted cooperation with FHA on the part of paint dealers and contractors. Loans for the purchase of machine shop equipment, while fewer in num ber than the others listed, invoiced larger individuality. Termites live underground, but reach the wood parts of a house by building mud runways up the mas onrv walls. Ma 2fi i foil
