National Housing Act

Fireside Chat-
The National Housing Act will provide jobs and homes for all Americans. Building houses requires a vast amount of trades which will provide for the largest number of workers than any other. The Federal Housing Administration will be created with this new act and they will encourage banks to mortgage lending backed by federal insurance against default by borrowers. This will in turn make it easier for more people to afford a down payment on homes. Insurance premiums paid to the FHA would be self-suporting, and for the home buyer, the long term low interest mortgage will make monthly payments that are cheaper than rent. This will also open the market to all those struggling single families. The FHA will spur economic growth in the form of home and community development. The Federal Savings and Loan Insurance Corporation is aiming to spend 275 million dollars to insure the mortgages that federally chartered savings and loan associations made.

Immediate impact- The steady growth of annual housing starts to 800,000 by 1940 indicated that the Act did indeed make a large impact. This act was immediately successful in helping Americans afford down payments and mortgages so they could buy their own homes.

Long Term impact- The National Housing Act sprung many suburbs where many Americans, including us, now live. The FHA is still around and working today as well. The National Housing Act branched off to form many other divisions of government designed to help American citizens. It formed the Federal Housing Administration as well as the Better Housing Program

These first three pictures are from brochures advertising the National Housing Act and its branching programs. The last picture is a political cartoon showing industry's excitement and approval of this act.