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Federal Reserve Bank
OF DALLAS

Dallas, Texas, June 10,1952

REAL ESTATE CREDIT
AMENDMENT TO REGULATION X
To A ll Persons Engaged in the Business o f Extending Real Estate
Credit in the Eleventh Federal R eserve D istrict:

There is quoted below a statement issued June 9, 1952, jointly by the Board of Governors of the
Federal Reserve System and the Housing and Home Finance Administrator relating to an amendment
to Regulation X.
“ The Board of Governors of the Federal Reserve System and the Housing and Home
Finance Administrator today announced revisions of Regulation X and related restrictions on
housing credit affecting 1- to 4-family houses and multi-unit residences, effective June 11, 1952.
No change was made in terms affecting nonresidential properties, although the Board indicated
that a change in this area was still under consideration.
“ The revision in Regulation X will permit more liberal credit terms for conventionally
financed 1- to 4-family housing built after August 3, 1950. At the same time the Federal
Housing Administration and the Veterans’ Administration, have been authorized by the
Housing and Home Finance Administrator, to change their related regulations covering FHAinsured mortgages and VA-guaranteed loans to bring them generally in line with the revised
Regulation X. FHA and VA regulations apply to both old and new housing. A similar revision
is authorized for the terms applicable to farm housing loans made by the Farmers Home
Administration.
“ The lowered down payments apply in varying degrees from the lowest to the highest
priced homes. In the case of FHA and conventional loans on 1- to 4-family residences, the down
payment has been reduced from 10 % to 5 % on houses costing $7,000 or less. At the other end
of the scale, the down payment has been reduced from 50% to 40% for houses costing $25,000
or more. In the range of $7,000 to $25,000 the new down payment schedule represents a gradual
curve rising from 10% to the 40% maximum.
“The schedule of down payments for VA-guaranteed mortgages has been proportionately
adjusted to maintain a preference for veterans as required by the Defense Production Act.
No down payment is required on veterans’ housing costing up to $7,000, although closing costs
must be paid in cash. The down payment required for houses costing $25,000 or more financed
with a VA mortgage is 35% compared with the previous maximum of 45%.
“The minimum down payment requirements for multi-unit housing (residential structures
containing more than 4-family units) have also been revised downward. The range is from 10%
to 40% for such housing as compared with a range of from 17% to 50% under the previous
schedule.
“ No change was made in the time allowed for paying off mortgage credit subject to any of
these restrictions. The maximum amortization period on properties valued at $12,000 or less
is 25 years and for higher priced properties 20 years, except that veterans may be allowed
a longer period if there is a finding by the Veterans’ Administration that a shorter amortization
would cause hardship.
“ The Board of Governors also announced two technical amendments to Regulation X. The
first of these provides special assistance for tenants and home owners whose homes have been
destroyed or damaged in areas where major disasters have occurred. In addition, Regulation X
has been amended to provide for longer term sale agreements where properties being purchased
will not be occupied or used by prospective owners until the financing terms comply with
Regulation X.
“ On the next three pages there are shown the down payment and maximum loan schedules
required: (1) under Regulation X and for FHA-insured loans on 1- to 4-family houses, (2) under
VA-insured or guaranteed credit on 1- to 4-family houses, and (3) under Regulation X and
FHA-insured loans on multi-unit residences.”

This publication was digitized and made available by the Federal Reserve Bank of Dallas' Historical Library (FedHistory@dal.frb.org)

REAL ESTATE CREDIT TERMS EFFECTIVE JUNE 11, 1952
UNDER REGULATION X AND FOR LOANS INSURED BY THE FEDERAL
HOUSING ADMINISTRATION

One- to Four-Family Residences

I f the “ Value per Family Unit” is

The “ Maximum Loan Value per Family
Unit" is

The “ Minimum Down Payment per
_________ Family Unit” is_________

Not more than $7,000

95% of “value per family unit”

5% of “ value per family unit”

More than $7,000 but not
more than $10,000

$6,800 (i.e., 90% of $7,000) plus
75% of excess of “ value per family
unit” over $7,000

$700 (i.e., 10% of $7,000) plus 25%
of excess of “ value per family unit”
over $7,000

More than $10,000 but not
more than $15,000

$8,550 plus 55% of excess of “ value
per family unit” over $10,000

$1,450 plus 45% of excess of “ value
per family unit” over $10,000

More than $15,000 but not
more than $21,000

$11,300 plus 45% of excess of
“ value per family unit” over
$15,000

$8,700 plus 55 % of excess of “ value
per family unit” over $15,000

More than $21,000 but not
more than $25,000

$14,000 plus 25% of excess of
“ value per family unit” over

$7,000 plus 75% of excess of “ value
per family unit” over $21,000

$ 21,000

Over $25,000

60% of “ value per family unit”

40% of “ value per family unit”

SCHEDULES OF AM OUNTS AND PER CEN TAGES OF M AXIM UM LOAN
V A L U E S AND DOWN P AY M EN TS A T $1,000 IN TE R V A L S

Value (Transaction Price)
Per Family Unit

$ 5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
13,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
Over $25,000

Maximum Loan Value_____
Dollar
Per Cent
Amount
o f Value

$ 4,750
5,700
6,650
7,050
7,800
8,550
9,100
9,650
10,200
10,750
11,300
11,750
12,200
12,650
13,100
13,550
14,000
14,250
14,500
14,750
15,000
—

95.0%
95.0
95.0
88.1
86.7
85.5
82.7
80.4
78.5
76.8
75.3
73.4
71.8
70.3
68.9
67.8
66.7
64.8
63.0
61.5
60.0
60.0

______ Minimum Down Payment
Dollar
Per Cent
Amount
o f Value

$

250
300
350
950
1,200
1,450
1,900
2,350
2,800
3,250
3,700
4,250
4,800
5,350
5,900
6,450
7,000
7,750
8,500
9,250
10,000
—

5.0%
5.0
5.0
11.9
13.3
14.5
17.3
19.6
21.5
23.2
24.7
26.6
28.2
29.7
31.1
32.2
33.3
35.2
37.0
38.5
40.0
40.0

REAL ESTATE CREDIT TERMS EFFECTIVE JUNE 11, 1952
FOR HOME LOANS GUARANTEED BY VETERANS’ ADMINISTRATION

One- to Four-Family Residences
I f the P rice per Family Unit is

The Minimum Down Paym ent* per Family Unit is

Not more than $7,000

Closing costs

More than $7,000 but not more than $10,000

$280 plus 10% of excess of sales price over $7,000

More than $10,000 but not more than $12,000

$580 plus 16% of excess of sales price over $10,000

More than $12,000 but not more than $16,000

$900 plus 55% of excess of transaction price over
$12,000

More than $16,000 but not more than $21,000

$3,100 plus 57% of excess of transaction price
over $16,000

More than $21,000 but not more than $25,000

$5,950 plus 70% of excess of transaction price
over $21,000

Over $25,000

35% of transaction price

SCHEDULE OF MINIMUM DOWN P AY M EN TS AT $1,000 IN TE R V A L S
Price per
Family Unit

$ 5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
18,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
23,000
24,000
25,000
Over $25,000

Minimum Down Payment*
Dollar
Per Cent
Amount
o f Value

0
0
0
380
480
580
740
900
1,450
2,000
2,550
3,100
3,670
4,240
4,810
5,380
5,950
6,650
7,350
8,050
8,750
—

$

0.0
0.0
0.0
4.8
5.3
5.8
6.7
7.5
11.2
14.3
17.0
19.4
21.6
23.6
25.3
26.9
28.3
30.2
32.0
33.5
35.0
35.0

*If the sale price (which excludes closing costs) is $7,000 or less, closing costs must be paid m cash. I f the sales price
is more than $7,000 but not more than $12,000, the minimum down payment is computed on the basis o f sales price. The
maximum loan is the difference between such down payment and the transaction price (which includes closing costs). If the
sales price is more than $12,000, both the minimum down payment and the maximum loan value are computed on the basis
o f the transaction price.

REAL ESTATE CREDIT TERMS EFFECTIVE JUNE 11, 1952
UNDER REGULATION X AND FOR LOANS INSURED BY THE FEDERAL
HOUSING ADMINISTRATION
Multi-Unit Residences
The “ Minimum Down Payment per
Family Unit” is

The “ Maximum Loan Value per
Family Unit” is

I f the “ Value per Family Unit”' is

Not more than $7,000

90% of “ value per family unit”

10% of “ value per family unit”

More than $7,000 but not
more than $10,000

$6,300 plus 55% of excess of “ value
per family unit” over $7,000

$700 plus 45% of excess of “ value
per family unit” over $7,000

More than $10,000 but not
more than $15,000

$7,950 plus 54% of excess of “ value
per family unit” over $10,000

$2,050 plus 46 % of excess of “ value
per family unit” over $10,000

More than $15,000 but not
more than $20,000

$10,650 plus 50% of excess of
“ value per family unit” over
$15,000

$4,350 plus 50% of excess of “ value
per family unit” over $15,000

More than $20,000 but not
more than $25,000

$13,150 plus 37 % of excess of
“ value per family unit” over
$20,000

$6,850 plus 63% of excess of “ value
per family unit” over $20,000

Over $25,000

60% of “ value per family unit”

40% of “ value per family unit”

SCHEDULES OF AM OUNTS AND PERCEN TAGES OF MAXIM UM LOAN
V ALU E S AND DOWN PAYM EN TS AT $1,000 IN TE R V A L S
Value (Transaction Price)
per Family Unit

$ 5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
18,000
14,000
15,000
16,000
17,000
18,000
19,000
20,000
21,000
22,000
28,000
24,000
25,000
Over $25,000

Maximum Loan Value
Dollar
Per Cent
Amount
o f Value

$ 4,500
5,400
6,300
6,850
7,400
7,950
8,490
9,030
9,570
10,110
10,650
11,150
11,650
12,150
12,650
13,150
13,520
13,890
14,260
14,630
15,000
—

90.0
90.0
90.0
85.6
82.2
79.5
77.2
75.2
73.6
72.2
71.0
69.7
68.5
67.5
66.6
65.8
64.4
63.1
62.0
61.0
60.0
60.0

Minimum Down Payment
Dollar
Per Cent
Amount
of Value

$ 500
600
700
1,150
1,600
2,050
2,510
2,970
3,430
3,890
4,350
4,850
5,350
5,850
6,350
6,850
7,480
8,110
8,740
9,370
10,000
—

10.0
10.0
10.0
14.4
17.8
20.5
22.8
24.8
26.4
27.8
29.0
30.3
31.5
32.5
33.4
34.2
35.6
36.9
38.0
39.0
40.0
40.0

The text of the amendment is enclosed.
Any information which may be desired concerning the Regulation will be gladly furnished by this
bank and its branches at El Paso, Houston and San Antonio, Texas.
Your very truly,
R. R. GILBERT
President

REAL ESTATE CREDIT
AMENDMENT NO. 10 TO REGULATION X

Issued by the Board of Governors
of the Federal Reserve System
with the concurrence of the
Housing1and Home Finance Administrator

Regulation X is hereby amended in the following respects,
effective June 11, 1952:
1. In paragraph ( e) of Section 5 strike out the words “ real
estate construction credit as to which” and insert therefor the
following:
“ real estate construction credit (1) which is ex­
tended pursuant to a program established by the Hous­
ing and Home Finance Administrator to relieve distress
caused by flood, fire or other similar disaster, or (2) as
to which” .
2. Add the following sentence at the end of paragraph (/)
of Section 5:
“ None of the provisions of this regulation shall
apply to any contract to sell real property under which
the purchaser is not to receive title, and not to have any
occupancy or other use of the property, until the terms
of the credit conform to the applicable provisions of this
regulation and the supplement thereto in effect on the
date the contract was entered into.”
3. In the maximum loan value provision of Schedule I of the
Supplement delete the table and insert therefor the following:
I f the “ value per fam ily unit” is

The “ maximum loan value per family
unit” is

Not more than $7,000

95% o f “ value per fam ily unit”

More than $7,000 but not more than

$6,300 (i.e., 90% o f $7,000) plus 75%
o f excess of “ value per family
unit” over $7,000

$10,000

More than $10,000 but not more
than $15,000

$8,550 plus 55% of excess o f “ value
per fam ily unit” over $10,000

More than $15,000 but not more
than $21,000

$11,300 plus 45% o f excess o f “ value
per family unit” over $15,000

More than $21,000 but not more
than $25,000

$14,000 plus 25% o f excess o f “ value
per family unit” over $21,000

Over $25,000

60% o f “ value per fam ily unit”

(OVER)

4.
In the maximum loan value provision of Schedule II of the
Supplement delete the table and insert therefor the following:
If the “ value per fam ily unit” is

The “ maximum loan value per family
unit” is

Not more than $7,000

90% of “ value per fam ily unit”

More than $7,000 but not more than
$ 10,000

$6,300 plus 55% of “ value per family
unit” in excess of $7,000

More than $10,000 but not more
than $15,000

$7,950 plus 54% o f “ value per family
unit” in excess of $10,000

More than $15,000 but not more
than $20,000

$10,650 plus 50% o f “ value per fam ­
ily unit” in excess o f $15,000

More than $20,000 but not more
than $25,000

$13,150 plus 37% o f “ value per fam ­
ily unit” in excess o f $20,000

Over $25,000

60% o f “ value per fam ily unit”


Federal Reserve Bank of St. Louis, One Federal Reserve Bank Plaza, St. Louis, MO 63102