Final answer:
The Federal Housing Administration (FHA) is a government agency that guarantees loans for eligible veterans, reservists, and National Guard members to afford homes they intend to occupy.
Step-by-step explanation:
The government agency that guarantees loans from private lenders to enable eligible veterans, reservists, and National Guard members to afford homes they intend to occupy is the Federal Housing Administration (FHA). The FHA was created in 1934 as part of Franklin D. Roosevelt's Depression-Era New Deal to stimulate the housing sector of the economy while ensuring housing met safety standards. Through the FHA, banks were encouraged to provide inexpensive loans to people seeking to buy new homes, and veterans took advantage of this program to secure mortgages after World War II with the help of the G.I. Bill.