The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1938-10-06

APPROXIMATELY 70 persons gaGlleIeu III
the Community Center, Monday even
ing. to hear l.. A. Clausen and Harold
Haggerty, mortgage conference repre-
sentatives of the Minneapolis Federal
Housing administration office, explain
details of the National Housing Act.
The FILA insures loans made by pri-
vate agencies and does not loan money
itself, Mr.. Clausen and MIR. Haggerty
pointed out Loans using the FILA
plan are available for four general
purposes:
/. New home construction.
2. Purchase of home already built
3. Repair or remodeling a house or
business property.
4. Refinancing of present obligation
on home.
The repaying of FILA loans are made
through monthly payments over
period of years depending upon the type
of loan and other factors. These pay
ments in the case of new or existing
construction include principal and in
tereSt, taxes, insurance end mutual
mortgage insurance, an item from
which the FILA obtains its operating
expenses.
After an outline of the setup by the
two FILA representatives, the following
answers were given to questions asked
during a general discussion:
l. The government loans no money.
1t insures the loan and must make pay
mentS if the borrower fails to.
2. Loans can be obtained for summer
home construction.
8. Resorts can borrow to build new
cabins or repair existing structures.
4. In new construction the lot need
not necessarily be entirely paid for, but
the borrower must have a 10 per cent
equity in the investment, and the LOT
usually takes care of this.
5. The location of new or existing
structures may determine the percen-
tage of the loan obtainable. Loans ur
to 90 per cent on new and 80 per cent
on existing construction are available.
g. The age of the applicant need not
bar him from obtaining a loan pro-
viding his children enter into the
agreement.
T. New construction must conform tc
FILA minimum requirements as to ma
terials, etc.
8. Old construction must be i'm
proved to meet FILA requirements i
money is loaned to purchaser.
9. Monthly payments are kept tt
one-fifth of the monthly income o.
borrower, and in some cases, are one
fourth. Size of family, age of Dor.
rover, and other factors determine this
10. Borrower may do own work OF
repairing or new construction and bu.
materials where he wishes. He must
however, submit bids an all work a
would be required of any contractor
along with plans and specifications
FILA is not critical of repair jobs but
of new construction.
IL. The FILA maintains an architec
tural service that includes inspection
of all plans, specifications, and bids
and makes suggestions when possibl
on improvements or ways to save con
Struction costs.
r. Valuation of lot is determine
by FILA and may be more or less thai
the actual purchase price.
IS. In new construction there mus
be at least ten feet from both sides O
the house to the lot line, that is, fiv
feet on one side and five on the othel
or six one one and four on the othel
etc.
IA. The appraisal of lot will nc
be made until an application for loa
is filed. The lot need not be purchase
until the loan is approved.
Is. A loan up to 80 per cent of tn
valuation can be obtained on a nous
that is being constructed for the pun
pose of renting.
16. The Minneapolis office of tn
FILA can process loan within six {
seven days, that is, this length of tim
will expire from the time it receive
an application until a commitment o
the loan is made. This is the quicke
service supplied by any FILA office
the country.
II. In the case of new conStructio