Evening star., 1942-07-11
'S3,408 Homes
Startedi in Six
Months Of AZ
Mortgage
Plan Utilized by
Privute Builders

Though pressed for materials,
private builders throughout the
country began construction of 3,408
new homes during the first six
months of the year under the Fed
eral Housing Administration plan
of mortgages. This compares with
1858 new homes started during the
first six months of last year.
The decline during the year
period was attributed to building
material shortages and the fact
that home building not required to
meet essential needs of war workers
has been terminated to conserve
critical war materials.
Of1cial announcement by Abner
H. Ferguson, administrator, pre-
sented these facts:
During June 1871 new houses for
war workers were started under
FHA inspection while applications
were filed for FHA insurance on
1852 war housing loans aggregat-
Ing $67 1881 $50. In June, 1941, new
homes started under the FLA pro-
gram totaled 21.170 while new home
insurance applications numbered
sl,43l in the amount OF $l41,71O,765.
New Home Applications.
New home applications filed with
FHA field Offices during the first
half Of 1942 totaled 148, ,46o in the
amount Of $638, ,331 ,449, as compared
with 150,35l for 1886, 1o3, 1852 in the
first half Of 1941.
Under the Title I program, prop
erty repair and improvement loans
reported for insurance during the
half-year totaled 231 900 for s89,-
371, 1,845, compared with 293, ,967 for
sl27,416,617 reported in the first half
OF last year. In June, 40,148 Title I
loans totaling $14,439,273 were re-
ported for insurance. compared with
53,471 loans for s22, ,9O3, ,254 reported
during June, 194l.
Loans now being insured under
Title L are for essential repairs or
for enlarging and rehabilitating
existing properties to provide hous-
ing accommodations for war
workers.
Meanwhile. Mr.. Ferguson pointed
out that wartime conditions have
greatly increased the demand for
placing home mortgages on an
amortizing basis thereby making
possible debt-free home ownership.
Mr.. Ferguson added that millions
of American families" would be af-
fected by this Government move.
Economy Program Aided.
BY using form of home financ-
Ing which provides for regular pay
ments to reduce the outstanding
loans on their homes. American
home owners will be contributing
valuable support to President Roose-
velt's program to prevent a sharp
rise in the cost of living during the
war period, Mr.. Ferguson pointed
out. One of the principal points
of that program is to encourage the
paying off of debts and mortgages as
a means of directing increased
purchasing power into channels that
will help forestall any further rise
In prices.
In addition to helping stabilize
economic conditions during wartime,
q more widespread use Of amortiz-
ing mortgages will strengthen the
position of homeowners in the
peacetime years to come. the Com
missioner asserted Furthermore
most amortizing mortgage plans
provide a convenient means for ac-
cumulating funds needed to pay
property taxes and hazard insur-
ance, thereby affording protection
against default on these important
items in the home-owner budget,
he pointed out.
During recent years, substantial
progress has been made in placing
an increasing proportion Of Amer
lean home-mortgage debt on a mod
ern, amortized basis, Mr.. Ferguson
observed. A large majority of the
hundreds of thousands Of new
homes purchased since 1884 have
been financed by amortizing, long
term loans and many owners OF
older properties have also re-
financed their mortgages along
these. lines.
A substantial number of Older
residential properties, however, still
remain on an outmoded mortgage
(See WAR HOUSING, Page BID