Final answer:
FHA mortgages are insured by the government, while VA mortgages are guaranteed by the government. Both have been key in promoting homeownership in the U.S., but also faced criticism for enabling discriminatory practices like redlining.
Step-by-step explanation:
Concerning all FHA/VA mortgages, the correct statement is that FHA mortgages are insured by the government, and VA mortgages are guaranteed by the government. The Federal Housing Administration (FHA), established in 1934, helps stimulate the housing sector by encouraging banks to make more affordable home loans, while also extending federal oversight to the home loan industry. VA mortgages, which stem from the GI Bill post-World War II, offer benefits to veterans and are guaranteed by the government, helping millions of former servicemen become homeowners. The FHA and VA programs have been instrumental in increasing overall homeownership in the United States, which has hovered around 70% in recent years. However, their criteria and practices have also been criticized for contributing to discriminatory housing patterns, such as redlining and segregation.