Final answer:
The FHA provides loans for a range of housing-related activities and aims to encourage homeownership, but has faced criticism for discriminatory practices such as redlining. The VA strictly provides loans to help veterans purchase homes, and does not extend to investment properties or non-residential purposes. The FHA, unlike the VA, will provide loans for a duplex purchased for rental purposes.
Step-by-step explanation:
The question you asked relates to which types of loans the Federal Housing Administration (FHA) and the Veterans Administration (VA) will provide. The FHA, created during the New Deal era, has policies that aim to stimulate homeownership by ensuring low-cost loans and setting construction standards. Over time, the FHA has expanded its loan guarantees to a wide range of housing-related activities, but it has drawn criticism for discriminatory practices, such as redlining, which have historically led to residential segregation.
The VA home loan program, as part of the GI Bill, aimed to help returning World War II veterans purchase homes without discrimination based on race or ethnicity. However, due to the social climate in the 1940s, nonwhite veterans faced challenges in using these benefits because of pervasive discriminatory practices.
Regarding the choices provided (agricultural lands, rental duplex, business, farming equipment), the FHA does not typically provide loans for such things as business or farming equipment, which are outside its housing-focused mandate. It is mainly concerned with residential properties. In contrast, the VA loan program focuses strictly on assisting veterans with the purchase of homes for their personal occupancy and does not extend to investment properties or non-residential purposes like agricultural lands or purchasing farming equipment. Therefore, the FHA will provide loans for a duplex purchased for rental purposes (B), whereas the VA will not