Take Advantage of the New Deal for Homeownership

Franklin D. Roosevelt instituted the Federal Housing Administration (FHA) during the height of the Great Depression, as part of his strategy to stabilize the ship-wrecked American economy. Since that time the FHA has proven itself to be a driving force in providing mortgage loans as well as establishing stable homeownership. By 2010 it is estimated that 67% of Americans will own their homes. This is in large part due to the stabilizing effect the FHA has had on the real estate market, particularly for consumers who have difficulty successfully applying for private home mortgage loans.

The History of the FHA, Mortgage Loans, and the American People

After insuring the loans of millions of Americans in need of low-income housing during the worst days of the Depression, the FHA has continued its historic tradition of stabilizing the housing market by making mortgage loans accessible to high risk qualified mortgage loan applicants. After the Depression, the FHA helped millions of American solders returning from the Second World War buy homes though their mortgage insured loans. In the 1950s and 1960s, FHA began working with privately owned apartments in order to provide affordable housing for handicapped, low-income and elderly individuals. As the 1970s and 1980s wore on, the FHA was a trusted option for Americans affected by spiraling inflation, the energy crises, and perennial recessions. Today, the FHA continues to be a leader in providing affordable mortgage loans to millions of Americans, most recently through its historic commitment to finance 100% of the cost of necessary reconstruction for people whose homes have been damaged or destroyed in natural disasters, such the Hurricane Katrina catastrophe along the Gulf Coast.

The FHA Works for You

The Federal Housing Administration is presently organized under HUD, the Department of Housing and Urban Development. The FHA is a service oriented lending insurer charged with the task of providing as many people as possible with access to affordable homes. Because of its unique access to government funding, the FHA is able to offer home mortgage loans to qualified Americans who possess little or poor credit. While an applicant must qualify for an FHA home mortgage loan, mortgage qualifications are less stringent than those of conventional lenders.