Madison County Democrat. (London, Ohio) 19??-1958, 1951-02-06

restrictions issued by the Federal
Housing Administration, and the
Veterans Administration. Regula-
ton X applies only to non-govern-
ment aided loans; the companion
restrictions to government-aided
loans.
The amendments to the regula-
tions are designed further to re-
strain inflationary pressures by
limiting the credit available for
the financing of residential con-
struction, and to bring about de-
crease in building 10 assure that
materials and labor required for
the defense program will be avail
able when needed.
A multi-unit residence is de-
fined in the amended Regulation
x as a structure such as an apart
ment house or apartment hotel
which includes more than four
family units Hotels, motels, room
ing houses and club houses, gem
orally speaking, are not included
in the present regulation.
Maximum Loans
The table of maximum borrow
ings on multi-unit residences, as
shown in the amended Regulation
Z, is as follows:
If the value per family unit is
not more than $1,000, more than
$1,000 but not more than $4,000,
more than $4,000 but not more
than S23, 800 over S23, 500.
The maximum loan value is
1870 of value, $3.50 plus 500 of
excess of value over $1,000, S10,-
050 plus 20qo of excess of value
over SIS, 900, 50@d of value.
FILA requirements affecting
credit terms on government-insu
ed housing have been revised to
bring them in general conformity
with Regulation x as amended.
Three-and four-family houses are
subject to similar restrictions as
were applicable to one-and two
family houses under the October
II regulations. In the case of rent
al housing Injured under Section
207 of the National Housing Act,
the FILA credit restrictions are in
basic conformity with Regulation
x as amended. That is the max
imum mortgage provided is 1870
of the estimated value of the prop
erty or project which does not ex-
ceed $1,000 per family unit and So
percent of the estimated value in
excess of $1,000 per family unit,
provided that the maximum mort
gage amount cannot exceed So, 100
per family unit.
The maximum mortgage avail
able for FHA-insured cooperative
projects in general, ranges from
SO to SO percent depending upon
the percentage of members who
are veterans, with the maximum
coverage becoming available when
membership in the cooperative is
$50 or more.
Veterans Administrations hous-
ing credit regulations have also
been amended to bring them in
general conformity with amended
Regulation X, making allowance
for the statutory credit prefer
ences for veterans. Accor d.
ingly, Veterans Administrators
down-payment and amortization
requirements have now been ex-
tended to three-and four-family
houses and to VA aided coopera-
tives having four or more family
units.
For all types of credit subject
to these controls, whether conven-
tional or government assisted, the
lender, in determining the amount
that can be loaned, must take
into account all credit previously
extended in connection with the
property and still outstanding, as
well as the amount of additional
credit being extended. This pro-
vision brings supplementary bor-
rowing, as we'll as first mortgage
loans. within the scope of the reg
ulation. In other words, minimum
down payments must be made
from the borrowers own funds in
connection with extensions of
credit on new residential construc-
ton and not from the proceeds of
supplemental mortgages, personal
loans. or other secondary financ-
ing in excess of the permissible
loan value.
Credit extended pursuant to
firm commitments made prior to
the effective date of this amend
ment is exempt from the regula-
ton. Also, construction loans made
to subcontractors and other per-
sons except the owners of multi
family units are exempt when
they have maturities not exceeding
18 months. Construction loans to
owners of multi-fanily units are
subject to the controls even though
of short term
IN addition to new multi-unlt
residences, the regulation also ap-
plies to major additions or inn
provements to rental-type prop
critics. The regulation defines q
major addition TO a multi--unit
residence as one cost of which eX-
ceeds 81, 500 and also exceeds an