The Washington times., 1929-04-06
ON
HOMES ARE
FAVORED

policies of u leading life insurance
companies has been issued by the
National Association of Real Estate
Boards from statements made by
the presidents Of the companies,
and is now being sent to members
of the brokers and mortgage and
finance divisions of the national
association. These reports repre-
sent 90 per cent OF the life insur-
ance companies from which money
il obtainable for real estate projects.
The subjects included In the out
line Of insurance companies loan
preferences are: Types Of property
on which loans are made; length of
term for the loan; the maximum
per cent value and the maximum
amount loaned; amortization require
ments; prepayment privileges; ap'
praisal requirements, and the ter
ritory in which the loans are made.
The outline also gives the naIAe and
address of the chief loan officer
in each company.
Homes Favored
Only seven companies care to
loan on all types OF property.
Where a discrimination as to the
type of property on which loans
are made prevails the regular old
fashioned, time-honored family home
as tradition and sentiment would
like it to, takes precedence over
every other type of property in the
loaning preferences of the majority
of the companies. or ;he COM
panies reporting. 50 make loans on
single dwelling units. thus placing
the home as the most favored or
all real estate as an excellent Sc
curity for loans.
DESPITE the dolorous feeling preVa-
lent regarding the farm situation. 1t
was found that only three companies
reported as having in any way al
tered their policies OF loans on
farms.
Commercial buildings were in
cluded as security in the loan poll
cies of "a companies. The duplex
dwelling apparently Is looked upon
generally with favor by the life In.
surance companies. Sixty-two COM
panies give loans on duplex dwell
ings. Next in favor came the two
apartment building on which So OF
the companies loan. Farms and
combnation apartment and store
buildings tied for favor in the loan
policies of the company. Both types
of property are loaned on by 81
companies.
The large apartment building Is
listed in the loan preferences OF 4S
companies. Industrial property Is
now included in the types OF prop.
erty on which 10 of the companies
make loans. Two companies re.
ported their willingness to loan on
churches. Ranches and plantations,
hospitals and country clubs we're
specifically included as eligible prop
erty on which to loan by one com.
pany.
Give Long Terms
The period for which compa nies
are ready to make loans varies from
as short a term as one year on
homes, as reported by one company,
to tWenty-year loans arranged by
three companies on farm property.
One company reported loans for Is
years on commercial buildings
The value of the loans made. cal.
culated on a percentage of the value
OF tne property given as security, or
on a maximum sum basis, likewise
varies greatly. The majority of the
companies will loan so per cent of
the assessed value of the property,
but one company will loan only 80
per cent of the value on farms, while
a.,other reports loans as high as
Sc % per cent Of the assessed value
on single unit dwellings and CONNER
cill buildings. Figured in terms of
I e maximum sums ready to he
loaned, the amounts run the Ramut
from $4,000 as the maximum
amount loaned by one company on
single unit dwellings and duplex
dwellings, to 100000, as the maxi
mum amount loaned by one company
on commercial buildings. Many re-
ports do not contain any definite fig.
ure as the maximum amount loaned,
but let the sum deDend on the vaIna