Question: what resulted from the work of the federal housing authority (fha) established in 1934

title: Federal Housing Administration
text: The creation of the Federal Housing Administration successfully increased the size of the housing market . Home ownership increased from 40 % in the 1930s to 61 % and 65 % in 1995 . Homeownership peaked at nearly 69 % in 2005 , near the peak of the US housing bubble . By 1938 only four years after the beginning of the Federal Housing Association , a house could be purchased for a down payment of only ten percent of the purchase price . The remaining ninety percent was financed by 25 - year , self - amortizing , FHA - insured mortgage loan . After World War II , the FHA helped finance homes for returning veterans and families of soldiers . It has helped with purchases of both single family and multifamily homes . In the 1950s , 1960s , and 1970s , the FHA helped to spark the production of millions of units of privately owned apartments for elderly , handicapped , and lower - income Americans . When the soaring inflation and energy costs threatened the survival of thousands of private apartment buildings in the 1970s , FHA 's emergency financing kept cash - strapped properties afloat . In the 1980s , when the economy did not support an increase in homeowners , the FHA helped to steady falling prices , making it possible for potential homeowners to finance when private mortgage insurers pulled out of oil - producing states .