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Title
Box 5, Folder 2, Document 37
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OO mF OOF
ie
Atlanta ( One ‘of 2
‘For HUD Housing
Home ownership for low-income families who have poor
‘credit ratings was brought a step closer to reality in Atlanta and
11 other cities Wednesday through a new pilot program launched
. by the Department of Housing and Urban Development (HUD).
The program was authorized
by the Housing and Urban De-
: velopment Act of 1968. Operat-
ing through the Federal Housing
Administration (FHA), HUD
will insure mortgage loans for
low-income families that .might
not otherwise qualify as borrow-
ers due to previous credit his-
tory or irregular income.
P. N. Brownstein, assistant
HUD secretary and commis-
sioner of the FHA, said a local
service organization in each of
the 12 cities will provide budget
and credit counseling to the
low-income families who receive
an insured loan under the new
program.
f In Atlanta, the service agency
the Consumer Credit Counsel-
ng Service of Greater Atlanta,
INC.)
The other cities where the
pilot plan is being tried are
Rochester, N. Y.; Jacksonville;
Milwaukee; Denver; Seattle;
Washington, D.C.; Duluth
Minn.; Wilmington, Del.; Pitts-
burgh; St. Louis, and Memphis.
BROWNSTEIN SAID in his
announcement that the control-
ling factor in the FHA’s decision
to underwrite a mortgage will
be the local service agency’s
promise that the family involved|*
can be helped through budget
counseling and guidance to han-
dle the responsibilities of home
“ownership.
Said Brownstein: “With this
new program, we hope to offer
the prospect of home ownership
to people who have had little
hope of ever owning a home.”
He said the local service agen-
cies invited to take part in the
pilot study were selected on the
basis of their previous experi-
ence in dealing with limited in-
come home buyers under other
HUD programs for low and
moderate income families.
Mortgages insured by HUD
under this program will have to
meet the same requirements as
existing FHA mortgage insur-
ance plans, except that regular
credit and income requirements
will not apply.
MORTGAGE LOANS up to
$15,000 will be eligible for insur-
ance. The amount is up to
$17,500 in high cost regions.
However, the monthly payments
of principle, interest, insurance
and taxes must not total more
than 25 per cent of the family’s
‘average monthly income.
~!
OO mF OOF
ie
Atlanta ( One ‘of 2
‘For HUD Housing
Home ownership for low-income families who have poor
‘credit ratings was brought a step closer to reality in Atlanta and
11 other cities Wednesday through a new pilot program launched
. by the Department of Housing and Urban Development (HUD).
The program was authorized
by the Housing and Urban De-
: velopment Act of 1968. Operat-
ing through the Federal Housing
Administration (FHA), HUD
will insure mortgage loans for
low-income families that .might
not otherwise qualify as borrow-
ers due to previous credit his-
tory or irregular income.
P. N. Brownstein, assistant
HUD secretary and commis-
sioner of the FHA, said a local
service organization in each of
the 12 cities will provide budget
and credit counseling to the
low-income families who receive
an insured loan under the new
program.
f In Atlanta, the service agency
the Consumer Credit Counsel-
ng Service of Greater Atlanta,
INC.)
The other cities where the
pilot plan is being tried are
Rochester, N. Y.; Jacksonville;
Milwaukee; Denver; Seattle;
Washington, D.C.; Duluth
Minn.; Wilmington, Del.; Pitts-
burgh; St. Louis, and Memphis.
BROWNSTEIN SAID in his
announcement that the control-
ling factor in the FHA’s decision
to underwrite a mortgage will
be the local service agency’s
promise that the family involved|*
can be helped through budget
counseling and guidance to han-
dle the responsibilities of home
“ownership.
Said Brownstein: “With this
new program, we hope to offer
the prospect of home ownership
to people who have had little
hope of ever owning a home.”
He said the local service agen-
cies invited to take part in the
pilot study were selected on the
basis of their previous experi-
ence in dealing with limited in-
come home buyers under other
HUD programs for low and
moderate income families.
Mortgages insured by HUD
under this program will have to
meet the same requirements as
existing FHA mortgage insur-
ance plans, except that regular
credit and income requirements
will not apply.
MORTGAGE LOANS up to
$15,000 will be eligible for insur-
ance. The amount is up to
$17,500 in high cost regions.
However, the monthly payments
of principle, interest, insurance
and taxes must not total more
than 25 per cent of the family’s
‘average monthly income.
~!
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