California Will Have Bis Home Building Program Under New Housing Act

President Roosevelt signed the amendments to the Federal Housing Act, designed to stimulate a vast building program through liberalization of federal mortgage insurance, on February 3.

The California building industry is anticipating a record business to follow the passage of the new housing act. California has been the leading state in FHA activity under the original act, having amassed a total of over 150 million dollars in Government insured loans since the act passed. New York is in second place with a total of 71 million dollars.

Through amendments to the Housing Act, down payments on houses costing $600O or less will be cut to 10 per cent, and the remainder can be paid over 25 years. The FHA will insure mortgages covering 90 per cent o{ the cost for a premium of one fourth of one per cent of the diminishing balance if accepted prior to July 1, 1939. Interest charges will be five per cent, plus the insurance premium.

On newly constructed homes costing between $6000 and $10,000, the FHA will insure mortgages covering 90 per cent of the cost up to $6000 and 80 per cent of the remaining cost. Previously the FHA would insure only 8O per cent of the cost of large or small houses.

Title I of the act, which was discontinued last year. has