The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-08-26
BANKERS AGAIN
ARE FINANCING
HOME BUILDING
Making of Loans Almost
Double Total of Six
Months Ago.
BnTlmes Special

4 ~ tWth sPttt4t
CHICAGO, H., Aug. &c.
Banks are again a source of
financing for the man who wants
to build a home But as yet they
are actually passing such money
over the counter, whether on FILA
insured loans or otherwise, in only
At per cent Of the cities of the coun-
try. and only in IS per cent of the
very largest cities. They we're max
ing home building loans in only "a
per cent of the cities six months
ago.
Insurance companies are now
placing actual money on home
building in as per cent of the cities
of the country They were making
such loans only % per cent of the
cities six months ago.
These totals, released today, are
the findings of a special inquiry
made by the National Association
of Real Estate Boards supplement-
ing its Semi-annual survey
of the real estate market Par
allel in an inquiry of six months
! ago, the association asked its men,
Der boards Cd to check types of
financing agencies from whom, in
actual practice, loans for new home
building may now be obtained, and
% to give present actual interest
rate at which first mortage loans
for new home building are being
made in their respective communi-
ties.
Interest Rates Vary
The reports, from 235 cities, show
the swing back to home mortgage
investment. They point out some
sticking places in building advance.
They reveal that the home builder
is still paying interest rates ranging
all the way up to per cent in many
sections, with per cent still the
commOnest rate, but that in 81 per
cent of all cities the charge is no
higher than per cent. Six months
ago this was true in only Sc per
cent of cities reporting. A rate not
higher than 5l2 per cent is now
used in per cent of the cities.
Individual investors continue to
be a more general source of home
construction money than either
banks or insurance companies, the
inquiry shows. They are a present
loan source IN 40 per cent of the
cities. This means direct lending
by the individual, and does not
measure extent of such lending
known to be carried on for the in
dividual investor by his bank or
trust company.
Individual investors, the aSSocia-
ton has pointed out in a compila-
ton issued April 81, 1885, constitute
not only the most general source of
supply but also the largest single
source, a contention which has been
verified by the findings, only re-
Gently published, of the Federal
Financial Survey of Urban Housing.
individuals in Lead
no " NOAUillCg OllC ICOCl dl survey
found individuals holding 24.1 per
cent, commercial banks holding Is
per cent, and life insurance COM
panies holding 1873 per cent of home
mortgages reported in 81 cities.
Trust companies, placed by new
FILA regulations in a favored posi-
ton to make truSt-plan insured
home mortgage loans for individual
investors, are themselves loaning on
new home building in only 10 per
cent of the cities reporting. They
were loaning in II per cent of cities
six months ago.
Important part is already being
/ taken by the new Federal Savings
and Loan Associations. Local Fed
erals are a present home conStruc-
| ton loan source in SO per cent of all
cities reporting and in SO per cent
of the largest cities. They were
leaning in only 81 per cent of the
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