National Housing Act of 1934

The National Housing Act of 1934 was a U.S. law designed to improve housing conditions and increase homeownership during the Great Depression. It established the Federal Housing Administration (FHA), which provided mortgage insurance to lenders. This reduced the risk for banks, encouraging them to offer loans to more people, including those who might not qualify otherwise. The act aimed to make home buying more accessible and affordable, stimulating the economy by promoting construction and real estate development, ultimately helping many Americans secure homes.