The History of the Federal Housing Administration

In 1929, eight months into President Hoover's presidency, the stock market crashes. 5,000 banks closed. People were losing their jobs every day. Franklin Delano Roosevelt is elected in 1932, promising a new deal. The Federal Housing Administration changes that. It allows much smaller down payments and the 30 year mortgage we now take for granted. Homeownership went from around less than 30% to almost 70%.