The Housing Act of 1934 was part of the New Deal and during the time of suburbanization. Before the Act, people had to pay for their household mortgages at an onset, but many couldn’t pay due to financial instability and this hindered people from allowing to keep their homes. The purpose of the act was to make housing and mortgage easily attainable and inexpensive as the establishment of the Federal Housing Administration took occurrence. This administration allowed homeowners to not have to pay for interest-only payments and it also lengthened the time that people could do loan payments. If a tragic event happens to a homeowner, the bank is allowed to repay the homeowner, lower income necessities, and permit people to withdraw more money.