National Housing Act of 1934

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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.

Further Readings:

  1. http://home.howstuffworks.com/real-estate/buying-home/how-did-the-fha-help-end-the-great-depression.htm
  2. https://livingnewdeal.org/glossary/national-housing-act-1934/

 

Glossary, UD: Historical development of Cities - Housing, ,

1 Comment

  1. At a time, when the country was going through such turmoil, the United States needed something that could help people’s lives in all areas. The New Deal helped out in many ways including the Housing Act of 1934. Thanks to this, people were able to afford mortgages and buy homes. This also helped out people by letting them save money and pay their mortgages at a steady pace. This act also had benefits if any complications occurred. This was one of the few steps taken to move away from the Great Depression.

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