$4 Billion Boost

The U.S. housing boom got another $4 billion boost in new credit last week. Congress passed the housing bill, sent it to the President, who is expected to sign it.

The bill makes available:

P: $2,250,000,000 to encourage moderate-cost and larger houses in housing projects by boosting the guarantees on mortgages. Example: The Government will guarantee 95% of the mortgage on two-bedroom houses costing up to $7,000 and four-bedroom houses up to $9,000.

P: $250 million for low-cost houses, chiefly in outlying districts, by guaranteeing 95% of mortgages up to $5,000 on owner-occupied houses.

P: $300 million for 40-year construction loans to educational institutions.

P: $250 million for the Federal National Mortgage Association ("Fannie May") to buy mortgages already made.

P: $150 million for direct loans to World War II veterans, permitting them to borrow up to $10,000 at 4% interest for 30 years.

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