New-York tribune., 1922-01-22
Little Cash and viii POmer
All Needed To Get Hnuso
With These Building Associations Will See yo,
Through; Have Aided Thousands and Thou. +
sands in This Section to Secure Homes .l

Building and loan associations have
done wonderfully in helping families
Of moderate means to purchase homes.
Tons Of thousands Of little places IN
the metropolitan district of New York
have been secured through the assist
ancc given by these thrift associations
When so many have got out Of the
renting class through the easy month
ly payment system Of the building
and loan association. there IS no
reason why others should not be able
to get beyond the demands of land
lords A little capital and the exercise
Of will power arc the only requirements
needed to secure a home. Of course,
the laggard has neither Of these, and
therefore cannot hope to become a
home owner.
There arc no complcations IN sccur-
ing the help of a building and loan
association. In fact, these associations
arc eager to help worthy families to
get homes. The associations arc man
aged by small home owners and arc in
tended for the use Of small home seek
crs. They do not finance nOn-rcsidcn-
tal building projects They operate
under the supervision of the Bank DC
partmcnt Of the state and arc guided
by the provisions OF the banking laws.
Contracts and agreements and all legal
forms used By the associations have
been accepted By the state authorities
as being free from tricky provisions
t.at would operate against the interest
of trusting investors.
First Requirement Of Borrower
Edwin +. Howell, tary-managcr
OF the Serial Building Loan and Saving
Institute, explained yesterday the yari-
GUS steps to be taken BY ono. who
wishes to got the assistance Of build
ing and loan association, either in
financing Of the building Of ncw
home or the purchase of one already lp.
or the safety of the association
and for the good of the prospectivc
home builder or home buyer," Mr..
Howell said ycstc rday. "buildng and
loan associations require that the bor-
rover have % to 40 per cent of tho
valuation Of the improvement and tho
land 1t stands upon. Experience has
'sugnt the associations to demand
th's equity, because tho purchase of a
nome should not be hardship. IF =
famlly y has not laid aside some capital
and is eager to have a home of its own.
the way TO get started is for tho head
OF the family to join a building and
Loan association by opening a savings
or installmcnt account, in which he
makes regular and periodical weekly or
monthly payments. These amounts to-
gether with the dividends. Will in tho
course Of few years provide him With
MS equity. He then purchase, = lot. in
location suited TO his needs and 80
cures plans OF a house which. with tho
lot, will cost, for example. $4,000 Hav-
ing applied for a loan to building
ioan association. an examination is
maze oy the institution of the PROPERTY
and proposed house. From this exam
nation 1T is determined that the loan
OF $500 may safely be made. The hor-
rover is so informed. and the assoc;a-
ton undertakes TO have the title exam
med IN order that its interest as we'll
as the interest Of the borrower NAV be
protected against fault and irregulari-
ties wnlch might affect his ownership.
Eleven Years to Pay
"Having determined that the title is
clear. the applicant contracts to have
his building erected by some reputable
builder. AS the building progresses. al
certain agreed stages the association
advances the money to cover the cost
OF the completion Of the building. Tho
ilnal payment is made and the sppli-
can't moves into the house and arranges
thereafter to pay monthly at the rate
OF $40 for each 1000 borrowed. These
payments continue for period usually
Of 139 months
From this procedure it will be ob
served. that every borrower has a loan
extending over a period of eleven Years
and seven months without the neces-
slty OF having at three or five wear in
tervals to arrange and pay for an ex
tension or renewal of his mortcapc
tic is relieved OF the possibilitv of
having his loan called on interest or re-
newal dates and the only additional ex
pcnsc to his monthly payments which
Is required of him is the cost Of an ex-
ANIMATION of the property two or three
times during the lifetime of the mort
gage to satisfy the association that the
property is maintained in good loan
able condition. This same routine is