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National Housing Act

What is 'National Housing Act'

Federal legislation passed in 1934 to create the Federal Housing Administration (FHA). Its purpose is to make credit more available to lenders for home repairs and construction and to make better housing available to low- and moderate-income families. The National Housing Act also led to the 1937 creation of Fannie Mae, a national mortgage association that provides a secondary mortgage market and further improves the availability of loan money.

Explaining 'National Housing Act'

To this day, the FHA plays a major role in making home ownership a possibility for greater numbers of people. For example, it facilitates mortgages with down payments as low as 3.5% instead of the 20% traditionally required by conventional lenders. Its lending guidelines also allow banks to consider an applicant's whole financial picture instead of relying solely on strict guidelines and formulas.


Further Reading


European competition policy and national housing policies: International implications of the Dutch case
www.tandfonline.com [PDF]
… In 1972, Mr Boleat taught economics at Dulwich College, and in 1973 was Research … national organisations of these institutions, individual building societies and savings and loans, and … tional finance in the house-purchase process, the share of the housing finance market taken …

A New Deal for the American Mortgage: The Home Owners' Loan Corporation, the National Housing Act and the Birth of the National Mortgage MarketA New Deal for the American Mortgage: The Home Owners' Loan Corporation, the National Housing Act and the Birth of the National Mortgage Market
heinonline.org [PDF]
… In 1972, Mr Boleat taught economics at Dulwich College, and in 1973 was Research … national organisations of these institutions, individual building societies and savings and loans, and … tional finance in the house-purchase process, the share of the housing finance market taken …

The troubled dream: The life and times of Section 235 of the National Housing ActThe troubled dream: The life and times of Section 235 of the National Housing Act
heinonline.org [PDF]
… In 1972, Mr Boleat taught economics at Dulwich College, and in 1973 was Research … national organisations of these institutions, individual building societies and savings and loans, and … tional finance in the house-purchase process, the share of the housing finance market taken …

The trajectory of social housing policy in Brazil: From the National Housing Bank to the Ministry of the CitiesThe trajectory of social housing policy in Brazil: From the National Housing Bank to the Ministry of the Cities
www.sciencedirect.com [PDF]
… In 1972, Mr Boleat taught economics at Dulwich College, and in 1973 was Research … national organisations of these institutions, individual building societies and savings and loans, and … tional finance in the house-purchase process, the share of the housing finance market taken …

Section 235 of the National Housing Act; Homeownership for Low Income FamiliesSection 235 of the National Housing Act; Homeownership for Low Income Families
heinonline.org [PDF]
… In 1972, Mr Boleat taught economics at Dulwich College, and in 1973 was Research … national organisations of these institutions, individual building societies and savings and loans, and … tional finance in the house-purchase process, the share of the housing finance market taken …

European policy and national housing systemsEuropean policy and national housing systems
link.springer.com [PDF]
… In 1972, Mr Boleat taught economics at Dulwich College, and in 1973 was Research … national organisations of these institutions, individual building societies and savings and loans, and … tional finance in the house-purchase process, the share of the housing finance market taken …



Q&A About National Housing Act


When was this act passed?

June 27, 1934.

What does the National Housing Act do?

It created the Federal Housing Administration and the Federal Savings and Loan Insurance Corporation.

How does the FHA make home ownership possible for greater numbers of people today?

The FHA facilitates mortgages with down payments as low as 3.5 instead of the 2 required by conventional lenders. It also allows banks to consider an applicant's whole financial picture instead of relying solely on strict guidelines and formulas.

What is the name of this act?

The National Housing Act.

Why was it passed?

To stop bank foreclosures on family homes during the Great Depression.

What is Fannie Mae?

Fannie Mae is a national mortgage association that provides a secondary mortgage market.

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