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The Nome Nugget
Nome, Nome County, Alaska
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President Eisenhower signed the $1,850,000,000 Democratic-sponsored Housing Act in Washington, demanding Congress correct provisions conflicting with private enterprise. FHA liberalized down payments to 3% on mortgages up to $13,500, aiding home buyers and builders amid recession.
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$1,850,000,000 Housing Act But Calls
For Some Fast Corrective Provisions
WASHINGTON, (P) - Builders and housing officials predicted today the $1,850,000,000 Housing Act will help push home construction, but emphasized it is no panacea for the business recession.
President Eisenhower signed the Democratic-sponsored bill yesterday with a demand Congress quickly correct some provisions which, he said, conflict with the private enterprise system and "burden the public purse."
But the Federal Housing Administration (FHA) sped orders to its field offices liberalizing down payments as the law permits. Some builders have notified FHA they were waiting to advertise the new terms to prospective home buyers.
The 3 per cent minimum down payment now applies to FHA-insured mortgages up to $13,500, instead of $10,000. On mortgages above $13,500, the down payment remains at 15 per cent and, above $16,000, 30 per cent.
This means a $14,000 dwelling which FHA calls the "typical" new house may be bought for $500 down instead of $900.
FHA Commissioner Norman P. Mason said the lower down payment and the removal of discount controls would be "a boon to home buyers and the home building industry."
Mason did not mention the one billion dollars earmarked to support the mortgage market. The billion dollars is at the disposal of the Federal National Mortgage Assn. With this money and 200 million dollars released to FNMA a few weeks ago, that agency is able to tell lenders and builders they can go ahead with construction plans with the assurance the government will buy up any mortgages they choose to sell.
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Domestic News Details
Primary Location
Washington
Event Date
Yesterday
Key Persons
Outcome
signed the $1,850,000,000 housing act; demanded quick corrections to conflicting provisions; liberalized down payments to 3% on fha-insured mortgages up to $13,500; $1 billion earmarked for federal national mortgage assn. to support mortgage market.
Event Details
President Eisenhower signed the Democratic-sponsored $1,850,000,000 Housing Act, criticizing some provisions for conflicting with private enterprise and burdening the public purse, and urged Congress to correct them quickly. Builders and officials predicted it would boost home construction but not end the recession. FHA immediately liberalized down payments, allowing 3% minimum on mortgages up to $13,500, enabling a typical $14,000 house to be bought for $500 down instead of $900. FHA Commissioner Norman P. Mason called the changes a boon to home buyers and the industry. The act provides $1 billion to the Federal National Mortgage Assn., plus $200 million recently released, to buy mortgages and assure lenders and builders.