Here are the general terms accepted by those using the Home Owner’s Loan Corporation:
- The dwelling on which the applicant desires a loan must be occupied as his home, or held by him as a homestead.
- Mortgagee’s consent to accept bonds in satisfaction of his loan should be secured and filed at the time of filling of the application.
- The corporation will only deal with the redemption of homes valued at not over $20,000, and it will not loan over $14,000 on any one home, either in bonds or cash.
- No clear line is drawn between farm and city homes, but typical farm loans should be handled by the Federal Land Banks.
- Only those mortgages can be taken up on homes which were on record on June 13, 1933, the date of the approval of the Home Owner’s Loan Corporations Act.
- The Home Owner’s Loan Corporation is for the relief of the home owner’s in distress with their mortgages, taxes, and assessments. If the loan can be financed through any other channel, it will not be made by the Corporation.
The principal and interest can be paid in 15 years at the rate of $8 per month on the $1,000.
Gallatin Democrat 8/24/33;
— researched and presented by Wilbur Bush, Gallatin, MO