Night Spectacle Features FHA Campaign Opening
The federal housing administration has as its major objectives promotion of employment, stimulation of building activity, improvement of housing standards, thawing out of the mortgage market and the liberation of private mortgage money. Raymond M. Foley, state director of the federal housing administration, told an audience of more than 1,000 at the public program at 827 Adams St., S.E., Monday night.
Arrangements for the program were made by a local sponsoring committee headed by Harry M. Taliaferro in co-operation with representatives of the federal housing administration who are in the city to conduct an insured mortgage and loan clinic at the city hall this week.
A roofing demonstration under synthetic daylight was a feature of the program, which included music and a skylighting prelude. Large searchlights were used to pierce the sky just as the program was underway.
Explaining the insured mortgage plan, Foley said, “In the insured mortgage plan we are simply adopting a sensible program of home financing. We say that an eligible borrower seeking money on an eligible urban residence should make one mortgage extending over a period sufficiently long for him to retire it out of income. We can insure a mortgage up to 20 years. We can insure a mortgage up to 80 per cent of the real value of the property. We contend and experience proves that an 80 per cent mortgage to be retired in monthly payments without necessity for refinancing is a safer loan than the old short term 50 per cent mortgage on the same property.
“Under this plan it is possible for an individual of good credit reputation to borrow funds from his bank - not government funds - at a maximum interest rate of 5 per cent so that he may pay for his home without having to face the necessity for refinancing with all the added costs and risks formerly involved. This is made possible by the mutual insurance fund built up by the borrowers. The cost of this fund is one-half of 1 per cent annually. Out of it the losses will be paid and whatever balance remains, applied against the mortgages.”
- Where - Council room, City hall
- When - Tuesday, Wednesday, Thursday
- Hours - 9 a.m. to 9 p.m.
- Open to present or prospective home owners, builders and buyers.
- Free and confidential assistance will be given by experts from the Federal Housing administration.
Grand Rapids Press, October 1, 1935