UNEED

VA Ends Home Down-PoYments

Washington, D.C.-The No-Down-Pbyment status was restored to GI home loans April 4 with announcement by President Eisenhower that the Veterans Administration would immediately remove the 2/a down payment required since 1955 on VA-guaranteed home loans. Veterans will, however, continue to pay cash for the expenses of closing a home loan.

were not that there was a serious slump in house construction, but that such action was needed as a quick "shot-inthe-arm" to the economy generally.

The sponsors of this legislation contend that it sult in 200,000 additional units annually, reports tional Retail Lumber Dealers Assn.

The major provisions of the new housing law are :

1. Reduces the down payments required under Sections 203 and 220 sales housing programs. Under the present law an FHA-insured loan under these sections can not exceed 97% of the first

$10,000 of value, 85/o of value above $10,000, under $16,000, and 70/o above $16,000. Under the new law, the loan can not exceed will rethe Naand e7% of value on the first $13,500.

2. Provides the following special assistance funds for FNMA to create an immediate market for mortgage loans :

(a) $500 million additional to be used at the discretion of the President to purchase mortgages.

(b) $50 million additional for the purchase of military housing mortgages.

(.) $1 billion for the purchase of FHA and VA mortgages on new homes where the loan does not exieed $13,500 (a new special assidtance program).

Repeals discount controls on FHA and VA mortgages. Authorizes FHA to increase the interest rate on Capehart Military Housing mortgages from 4/o to 4%%.

Extends Veterans direct loan program and the VA home loan guaranty prog4em to July 25, 19ffi.

Maximum loan amount of the veterans direct loan is increased from $10,000 to $13,500.

7. Pro'r'ides an additional $150 million for each of 2 years for the VA direct loan program.

8. Authorizes VA to increase the interest rate on the direct and guaranteed VA loans up to a ceiling of 4fu/o provided the rate established is at least onehalf of one percent below the'established rate of FHA Section 203 mortgages (which is at present s%%).

9. Permits VA to give builders a firm commitment on direct VA loans upon payment of a 2/o fee, and permits advances to a builder during construction up to 80/o of the cost of the in-place construction.

10. Directs the VA to establish only requirements that are in keeping with the surrounding area (which would mean less strict requirements in rural areas).

None of the representatives of home building or financing groups were given an opportunity to appear and testify on this legislation prior to its enactment into law. There was no opposition to the bill either in the lfouse or the Senate, and very little debate.

Early in May, committees of the Congress will hold hearings on all other pending housing bills, including the Administration's housing proposals.

Chandler Yqrd Gets Ad Agency

Chandler Lumber Company, veteran Valley supplier to the home-owner and building trade, hds selected the Ed Belford Agency of Studio City to head up its advertising and public relations plans, announces Stanley E. Brown, president. Kick-off campaign, budgeted at $10,000, includes the Los Angeles Times, community newspapers, radio, direct mail and "In Person" shows to be staged at the

DISCUSSING PLANS for the campaign are (seated) Stanley E. Brown, president of Chandler Lumber, and (1. to r.) Belton Love, sales manager for Chandler Lumber; Hal Gold, Ed Belford, Ed Belford Agency; and Nola Thorp, Hollywood starlet, who will act as hostess for Chandler Lumber Company.

S-acre establishment in Van Nuys, revealed Hal Gold, account executive for the agency.

Chandler Lumber Co., located at 7817 Van Nuys Boulevard, Van Nuys, has a unique and orginal do-it-yourself retail operation that allows the customer to make selections on a serve-yourself basis.

Gontrscfors Going to School

Men, material, machines, money and their inter-relationship will'be analyzed, at the second annual Building Contractors' Educational Workshop, being held from April 10 to May 15 on the UCLA campus. Sponsors are the UCLA Graduate School of Business Administration, IJniversity Extension, and the Building Contractors' Association of California.

Stick with quality . . . and grow! When you sell siding, ftnish and paneling from Hobbs Wall, you've made more than one sale. You've taken a giant step to the next sale. Grade for grade, size for size, the best buys in Redwood come from Hobbs Wall. As they have for over 93 years!

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