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