The Wilmington morning star., 1944-11-24
CTS Begin Applications
For Government Loans
BY ANN sTEv1cK
shinpton Correspondent

W. ,r,,rNGToN, Nov. % - The
" Va Of that CT loan money vet
jins .s have listened for since Con-
eEanS 49, the CT Bill of Rights
sEsss esq., begins to be heard as long
in 'u '4sd application forms for home
pans an. office in Washington to the
s ,,tion's $1,000 banks ks: .,..+ ,nn,;c,.
Nearly and loan certificate No.
lion fo airaady gone to Washington
has @ll Bankers in the rest OF the
veteran '.,, Who don't already have ap ,,
souI, .;9c " forms ready to go will
plca'lOttb them Immediately. That
have T. ' mean it's all over for the
dos snsns but jingle of money as
veterans tsd ont by Joseph Brott, coun-
polnile . American Bankers Associ-
SCI Elf for v 55,ls says, The CT Act does
stola | INV way supersede or mod
net III. u h. banking laws, national or
liy .D s Veteraos will still run up
sals ,.+ battling variety of obs
sss gam in various banking laws.
taC cs,a - Of these obstacles can be
s ';ded by shopping around
@o sone different types Of banks.
alliOD ;astance, 5000 banks are ma
t t,sn.I IlS' Chartered, and subject to
u u'dars, Reserve Act limitations
I soreuting them from making
p pal estate loans on second
1 rortase. Since Veterans, Ad-
,,' inistration takes first mortgages
ih''ll ~ Guaranteed real estate
OIL ~ II looks as if veterans will
we lot'' he able to get the 50 per cent
al, ~. home loan from a ma
4 tional bank.
The Comptroller of the Curren-
4 ~ however, has ruled that the
~. sscond such loan, which a n be
\ I'M per cent guaranteed by VA
4 chen necessary to make up full
ra,rrbase price, won't be consid-
4 erpd real estate loan but a loan
m VAS guarantee. Thus, under
corig rules. national banks won't
;o.n Won money on the first so
rpr cent guarantee deal at 4 per
rent but they'll make the second
Inn per cent guaranteed loans
which can also carry 4 per cent
;nterest-nice work if you can get
It.
The Federal Home Loan Bank
Administration, on the other hand,
has moved its old real estate loan
limitation of 80 per cent of value
CT properly up to 100 per cent for
CT loans, with only 20 per cent
necessarily guaranteed by Vet
GRAMS Administration. That means
veteran with a firm credit foot
irg can borrow the full amount
for a $4,000 home, with only
$1,000 guaranteed by VA.
Veterans will find that state
chartered banks have various
time and percentage of value linn
its on real estate loan payments,
many of which will be less than
the 2O-year, 100 percent of value
limit in the CT Bill of Rights. In
some states where banking boards
have power to change banking
regulations, rules have been
eased for veterans loans. In 9TH
ers it must wait till 1945 when all
safe legislatures expect those OF
Kentucky, Louisiana, Mississippi,
and Virginia are scheduled to
meet In the meantime, and per-
haps afterwards in some cases,
veterans shouldn't be surprised
II they run into some legal snags
III fulfilling all the promises of the
Gl Bill of Rights on real estate
leans.
Highlights of the rules for home
Icons, only ones ready to go as
yet; Veteran can borrow money
with US government guaranteeing
payment Of 50 pei cent of loan up
70 maximum Of $4,000, to buy,
ollld, repair or alter a house situat-
ed In the United States, the main
purpose Of what is to be home
Tor the veteran and his family. He
Can also borrow money to clear up
past due indebtedness on such a
t~elllng. The dwelling is limited
" not more than 4-family units, or
combination business and dwell
ing unit.