How To Find and Finance a Farm
(Page 7 of 8)
An interesting federal program that appears to offer
promise for any joint ownership consideration is in the
National Housing Act's Public Law 73-479, Section 213. This
provides for technical advice and assistance from the
Federal Housing Administration in planning, organizing,
developing, constructing and operating cooperative housing
for five or more dwelling units. This program may be used
to finance a communal venture and may provide an excellent
way to finance building on inexpensive land when little
cash is available. Loans are available for up to 97% of the
estimated value of property for continued use as a
cooperative. According to one source, mortgage limits are
$9,000 per family unit without a bedroom; $12,500 per
family unit with one bedroom; $15,000 per family unit with
two bedrooms; $18,500 per family unit with three bedrooms
and $21,000 per family unit with four or more bedrooms.
Maximum mortgage maturity is 40 years.
RELATED CONTENT
To qualify for the National Housing Act program, one must
form a nonprofit cooperative ownership housing corporation
or a nonprofit cooperative ownership housing trust.
Permanent occupancy of the dwellings is restricted to the
members or beneficiaries of the corporation or trust. The
mortgage must cover the properties of the corporation or
trust.
For further information, specific details and/or advice,
contact the Federal Housing Administration, Department
of Housing and Urban Development, Washington, D. C.
20411 or any of its regional offices (New York,
Philadelphia, Atlanta, Chicago, Ft. Worth, San Francisco
and San Juan, Puerto Rico).
Section 233 of the same law authorizes the FHA to insure
mortgages on properties where advanced technical housing
design, materials and construction or experimental
neighborhood design produce a significant reduction in
costs or improve quality. Although the FHA has
traditionally fostered conventional construction methods
(often inferior in quality and workmanship) the terminology
in this law may provide the basis for a pilot project you
might develop on your own land. It is certainly worth
exploring.
Under FHA's Section 203 (i) program of mortgage insurance
for homes in outlying areas, a home buyer must make a down
payment of 3%. On the old maximum ceiling of $13,500, the
down payment on such a loan would be only $405.
Several additional FEDERAL ASSISTANCE programs are worth
considering before rushing out to sign that mortgage
contract. For a complete catalog of Federal Assistance
programs write to the Office of Economic Opportunity,
Washington, D. C. 20506.
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