Show HOSPITAL NOTES I Veterans purchasing homes with the aid of GI Gt loans after July 30 1955 will be required to make a down payment of at least two per pcr percent percent cent and the maximum time for tor repayment of ot loans will be set at years 25 Veterans administration has announced Similarly moderate credit requirements requIrements requirements re re- re- re are being placed in effect by the Federal housing administration administration ad ad- ministration for homes purchased with insured mortgages Since April 23 23 1953 the VA has had no mandatory down payment payment pay ment requirements and the mortgage mortgage age repayment period could run runas runas runas as high as 30 This action VA said was taken after a thorough study of national economic conditions especially those prevailing in the residential construction and mortgage financIng financing Ing ng fields The new requirements are expected to help protect prospective prospective pros pros- GI loan applicants against increase prices of homes overextension overextension over ex tension of credit and financial risks Further they should tend tendo to o the mortgage market by eliminating the year 30 no down payment loan which currently currently currently cur cur- is being traded at widening discount margins The new requirements are not retroactive They are not applicable applicable able to purchase of homes for which VA has Issued certificates of reasonable value prior to July 30 or In ca cases es where requests for appraisals actually have been received received received re re- in VA offices prior to July 30 Also the requirements do not apply to GI loans made solely for forthe forthe forthe the replacement or reconstruction of residential property that has been destroyed or substantially damaged by flood fire or other similar nor to repair repair repair re re- re- re pair alteration or Improvement loans The most recent VA figures show that the average price of GI homes purchased with no down payment has been about Under the new regulations the down payment requirement for such a house would be A VA study of the VA home loans closed in 1954 revealed reveal reveal- ed that veterans had made an average down payment of 1100 On those loans made in 1954 with down payments the average down payment for new houses ran 11 per cent and the average for existing existing exist exist- ing homes Was 15 per cent |