Final answer:
FHA loans are available for all legal residents of the United States, not just first-time or low-income home buyers. The FHA was originally created to stimulate the housing sector during the Great Depression, but has faced criticism for encouraging residential segregation through discriminatory lending practices known as 'redlining'.
Step-by-step explanation:
The Federal Housing Administration (FHA) provides loans to any legal resident in the United States, so the correct answer is c) Any legal resident of the United States. Established in 1934, the purpose of the FHA was to stimulate the housing sector during the Great Depression by making loans more available. Encouraging homeownership was a key aspect. However, it's important to note that historically, the program has been criticized for its practice of 'redlining,' which refers to discriminatory lending practices that prevented some racial minorities from obtaining loans. Although the FHA aimed to encourage homeownership, unintendedly FHA policies contributed to residential segregations by encouraging suburbs' formation where mostly white families resided.
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