Asked by Miguel Quezada on Jul 19, 2024
Verified
What statement is true of the Federal Housing Administration?
A) The FHA gave loans directly to home buyers.
B) The FHA issued short-term money for renters.
C) Under FHA guidance, expensive homes were built.
D) The FHA insured long-term mortgages issued by private banks.
E) The FHA focused on renting apartments rather than home purchases.
Federal Housing Administration
A United States government agency created to improve housing standards and conditions, and to provide an adequate home financing system through insurance of mortgages.
FHA
Stands for Federal Housing Administration, a United States government agency created in 1934 to improve housing standards and conditions, and to provide an adequate home financing system through insurance of mortgages.
Long-Term Mortgages
Mortgage loans with extended repayment periods, typically ranging from 15 to 30 years, allowing for smaller monthly payments.
- Inspect the function of critical New Deal organizations and their influence on economic resurgence.
Verified Answer
CF
Claudia FloresJul 26, 2024
Final Answer :
D
Explanation :
The Federal Housing Administration (FHA) is known for insuring long-term mortgages issued by private banks, which helped to lower the risk for lenders and made it easier for borrowers to secure home loans. This insurance did not involve the FHA giving loans directly to home buyers or focusing on renting apartments.
Learning Objectives
- Inspect the function of critical New Deal organizations and their influence on economic resurgence.