The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1934-08-10
HOUSING ACT is
PUT IN EFFECT
BY U. S. TODAY
Improvement of Homes Aim
OF New Recovery
Drive.
CONTINUED From Page One

may qualify for government credit
insurance on loans they make for
alteration. repair and improvement
o. real property
The rules are simple although de-
tailed ANY accredited financial IN
s'ItuIou may apply for government
credit insurance Forms are nov
In the mail The government asks
for q copy 0f the bank or lending
institution current financial state
meut along with a similar copy
sworn 20 one wear ago. Il inquiries
as 70 the source OF Ioanable funds
and q description Of the present
method of lending or financing for
general purposes with rates Of inter
est and other fees or charges.
on approval Of the application
the government enters into an i'm
surauce contract with the bank OF
other lending institution Imme-
date loans can be made by Ob-
serving the following regulations set
up as q part Of the insurance con-
tract
$1,000 Is set as Limit
I. PIomissory notes must be
signed be- owners of improved real
property and must be valid and en-
forceable in the state in which they
are issued.
.. Notes must not be less than
500 face value or more than $1,000
3. The financial institution may
not collect as interest, discount or
Zee a total charge III excess Of an
amount equivalent TO s. discount
per year per 500 original face value
Ct The note. Interest 10 the Dor
rover Under this regulation amounts
slightly in excess of sd per cent?
4 Notes may provide for pay
ment bv maker Of late charge
not to exceed FIVE cents for each
dollar for each payment more than
fifteen DAYS in arrears. to cover
extra services.
5. Notes must run only three
years unless special permission Is
granted By the federal housing adj
ministratIon. The maximum I'M
der any circumstances is five years.
Taxes Must BE Paid
6. Notes must be payable in equal
monthly installments except final
installments which may be less.
Here again special arrangements
may be made where makers income
is divided into quarterly. semi-an-
nual or annual payments.
z. Notes must be made 10 cover
repair on real property. and may
include engineering or architectural
services
8. Notes can not be made on
movable equipment.
o The property to be improved
by the loan must not have out
standing against II delinquent taxes
or assessments. Neither must it
have other obligations in the form
Of liens or mortgages not IN good
standing unless holder of said en-
cumbranceS endorses the makers
note. Property having demand
MORTGAGES outstanding Will be eligi-
bic If the property owner is keep
ing up 10 date payments of interest
and principal
10. The maker or makers of the
note husband and wife to sign If
required By state law must have
an income annually at least five
times the annual payments required
on the note
Five Loans 10 a Person
Il. ANY number Of notes may be
made for Improvements. but the
total on any single piece of prop
erty can not exceed $1,000. Not
more than five pieces of property
can be accepted for insurance from
n single owner unless special per-
mission is granted by the FILA.
u If a note on its face complies
with the requirements and If the
property owners credit statement
reveals other facts 10 make the loan
eligible. these may be taken as final
proof Of eligibility.
q. Eligible notes must be report
cd within thirty days from date 10
the federal housing administration
in Washington in order TO be COW
cred by insurance. All notes paid
in fun must be reported within
thirty days. Special forms are sup
piled IN each case. 4.
"A. Claims on loans delinquent
may include ta) net unpaid princi-
pal. Ob1 unColleCted earned interest
at s per cent per pear. Co uncol-
leCted late charges" td) unCOlleCt-
|