Question

Which of these statements accurately describes home ownership in the United States prior to World War II?

1) A typical down payment on a house was 25
2) A typical down payment on a house was about 35
3) A typical down payment on a house was 50
4) A typical down payment on a house was 75

Answer 1

Option (1), Prior to World War II, typical house down payments were 20-50%. After the war, the G.I. Bill allowed veterans to purchase homes with minimal or no down payment, significantly increasing home ownership rates.

Step-by-step explanation:

Before World War II, typical down payments on a house were substantial, often around 20-50% of the home's purchase price. However, after the war, initiatives like the G.I. Bill radically changed the landscape of home ownership.

The G.I. Bill enabled veterans to secure home loans with minimal or no down payment, radically driving up home ownership rates. Despite the general recommendation of a 20% down payment, the G.I. Bill's provisions allowed for an unprecedented rise in the number of homeowners, from 40% in 1945 to 60% by the mid-1950s.