what resulted from the work of the federal housing authority (fha) established in 1934
Federal Housing Administration
The creation of the Federal Housing Administration successfully increased the size of the housing market . Home ownership increased from 40 % in the 1930s to 61 % and 65 % in 1995 . Homeownership peaked at nearly 69 % in 2005 , near the peak of the US housing bubble . By 1938 only four years after the beginning of the Federal Housing Association , a house could be purchased for a down payment of only ten percent of the purchase price . The remaining ninety percent was financed by 25 - year , self - amortizing , FHA - insured mortgage loan . After World War II , the FHA helped finance homes for returning veterans and families of soldiers . It has helped with purchases of both single family and multifamily homes . In the 1950s , 1960s , and 1970s , the FHA helped to spark the production of millions of units of privately owned apartments for elderly , handicapped , and lower - income Americans . When the soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s , FHA 's emergency financing kept cash - strapped properties afloat . In the 1980s , when the economy did not support an increase in homeowners , the FHA helped to steady falling prices , making it possible for potential homeowners to finance when private mortgage insurers pulled out of oil - producing states .
The creation of the Federal Housing Administration successfully increased the size of the housing market . Home ownership increased from 40 % in the 1930s to 61 % and 65 % in 1995 . Homeownership peaked at nearly 69 % in 2005 , near the peak of the US housing bubble . By 1938 only four years after the beginning of the Federal Housing Association , a house could be purchased for a down payment of only ten percent of the purchase price . The remaining ninety percent was financed by 25 - year , self - amortizing , FHA - insured mortgage loan . After World War II , the FHA helped finance homes for returning veterans and families of soldiers . It has helped with purchases of both single family and multifamily homes . In the 1950s , 1960s , and 1970s , the FHA helped to spark the production of millions of units of privately owned apartments for elderly , handicapped , and lower - income Americans . When the soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s , FHA 's emergency financing kept cash - strapped properties afloat . In the 1980s , when the economy did not support an increase in homeowners , the FHA helped to steady falling prices , making it possible for potential homeowners to finance when private mortgage insurers pulled out of oil - producing states .