Evening star., 1937-06-29

VA w W. NVAASp 40 kSyo0SV W tA10
month, but divided In such way ~ to
make each payment no more burden
some than what Is usually paid for
rent Principal. interest on the loan.
taxes, IRE Of hazard insurance. a.
well as mortgage insurance and service
fee, are included. In other words. Ill
fxed charges, in addition to the prin-
cipal amount borrowed. are counted
up and known before the start. Then
they are allocated for each month, and
IS each payment Is made you can
check It OF the schedule We give you
and see just how much you still owe.
In order TO balance these payments
to your income, the time In which you
will have to pay may be stretched out
over rs long a period as 40 years. il
necessary-but In the meantime you
are your own landlord.
Nine out Of ten families are using
about one-l1fth or less OF their In
comes to meet their monthly mortgage
payments under the r H. A. plan.
Neighborhoed Examined.
The house which IS security for the
mortgage must be structurally sound.
whether 1t be Z new house or an old
one. We make Z careful check to b
certain that it IS sound. Not only do
We examine tho house itself. but the
whole neighborhood in which it is
located. For the value OF any one
property can be destroyed-sometimes
within = few yeArs-if surrounding
properties are ON the downward path.
Furthermore, one bad house In an
otherwise good neighborhood is an
eyesore and eventually a destructive
influence in exactly the same way
that one bad apple will soon contami-
nate whole barrel
Also, If we flnd that 4 man is at
tempting the purchase OF a more ex-
pensive and elaborate house than he
can possibly pay for, we will not in
sure the mortgage for him.
Thus IN preventing overbuying and
overborrowing. the F. H. A. is max
ing one OF its most important contri-
buttons. For, il you are not In 4
position to make the necessary 20 per
cent down payment the chances are
you are trying to buy home on too
slim = margin, and If you attempt to
60 ahead and become a home owner
on another plan you will probably be
forced to use some form OF second
and perhaps third mortgage. These
are often loaded with cleverly hidden
charges which in the long run are al
most certain to be too heavy . burden
for you to carry, or they may mean
that the price of the property
has been lacked up to justify the
risky financing. It would be far bet
ter to wait while until you can save
= bit more, and then 60 ahead on
the Federal Housing Administration
plan, which is a safer, surer means
Of home buying and your only safe
guard against paying too much.
Good Credit Essential.
The 20 per cent equity required by
the F. H. A. does not have to be all
cash. 1t might be land upon which
the house is to be built, or some
other form Of equity. But a steady
income and good local credit record
are essential.
II you can pay Is much as q third
OF . half in cash, your problem, Of
course, is a fairly simple one and you
don't need the Federal housing plan
But, if you have only few hundred
dollars and financing for all the bal
ance is offered you through some
other plan, then beware. Investigate
the whole proposition. Ask a few
questions. See if you are being urged
into a transaction solely because the
seller wants to close the deal. Is
the mortgage money offered by a
lender who has an interest in the ex-
orbitant fees and excessive profits
through unregulated second and third
mortgages? Does the house repre-
sent the kind OF construction which
will pass the Searchin0 examinat tion