Final answer:
The FHA loan was created by the Federal Housing Administration (FHA) as part of Franklin D. Roosevelt's New Deal in 1934. It aimed to provide affordable home loans to families who may not have been eligible otherwise.
Step-by-step explanation:
The FHA loan was created by the Federal Housing Administration (FHA), which was established in 1934 as part of Franklin D. Roosevelt's Depression-Era New Deal. The FHA aimed to encourage banks to make inexpensive loans to people seeking to buy new homes while ensuring that housing was built up to new safety standards.
One of the main purposes of the FHA was to provide federally guaranteed home loans for families who might not otherwise be eligible for homeownership. The FHA loan program has significantly contributed to increasing homeownership rates in the United States.
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