Home     Photo Gallery     Classroom     Documents
THE FORT WAYNE JOURNAL-GAZETTE

    Publishing Information

    FHA LOANS UP TO 90% SEEN
    Plan Suggested As Spur To Building

    NOV. 21, 1937

  1. There is some discussion among administration leaders in Washington of increasing to 90 per cent the mortgages which may be insured by the Federal Housing administration. Present stock market and other recessions are attributed in some circles as being caused by the lack of a sustained home building program. The 90 per cent insurance plan is being suggested as a possible method of spurring the lagging construction industry. Following the Pittsburgh convention, officers of the National Association of Real Estate Boards discussed the merits of such a plan and President Stark, on behalf of the association, has given his approval to the suggested change. President Stark points that four-fifths of all homes are purchased with 10 per cent down payments and therefore carry 90 per cent mortgages of one kind or another. President Stark believes that it is better to consolidate first and second mortgages in order that the borrower may have the benefit of a repayment plan over a long period of years, adjusted in accordance with his ability to pay.