National Housing Act

The National Housing Act, enacted in 1934 in the United States, aimed to improve housing conditions and expand homeownership. It established the Federal Housing Administration (FHA), which provided insurance for mortgages, making it easier for people to buy homes. By reducing the risk for lenders, the Act encouraged them to offer loans to a wider range of borrowers, including those with lower incomes. This helped stimulate the economy during the Great Depression and laid the groundwork for the modern housing finance system, making homeownership more accessible to many Americans.