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Show FHA Raises ' Remodeling Loan Limit There's good news in the 1956 Housing Act for home-owners who want to do extensive remodeling re-modeling to add living space or to modernize their houses. Now they can obtain FHA-in-sured Title 'I loans of as much as $3,500 with a five-year period for repayment. Before Congress passed the new law, owners of single-family dwellings were limited to FHA-insured loans of $2,500, repayable re-payable in three years., The longer amortization period means that monthly payments are smaller. Terms Fill Need The liberalized terms are particularly par-ticularly Important to growing families who need more space in their small houses and to owners of old houses who want to bring them up to date. Here's the way FHA Title I loans work: A family decides to build an addition on their small house for an extra bedroom and a larger, more modern kitchen. Their remodeling contractor tells them the job will cost $3,300 and the family applies for an FHA Title I loan through a local bank. The contractor or building materials dealer will help them with these financial arrangements. arrange-ments. FHA requires that a remodeling remodel-ing job "improve the livability" of a house. The colorful asphalt shingles chosen by the family for their new roof meet this requirement. re-quirement. Asphalt shingles are recognized as a "substantial improvement" im-provement" because of their long life and weatherproofing ability. Other Improvements The mineral wool insulation, which will be applied in batts in the walls and ceilings of the new addition and blown pneumatically pneu-matically into the walls of the old part of the house, also is an improvement frequently made. This type of insulation usually pays for itself in savings on heating heat-ing while making the house more comfortable and increasing increas-ing its value. The windows and doors of ponderosa pine chosen for the new addition also represent a "substantial improvement. One of a number of reasons for this is that wood can be stained or painted, - thus increasing the value of the house by adding to its appearance inside and out. The new law for the first time also permits loans for improve-1 ment of houses that are less than six months old. |