A new government program started in the Depression era was the Federal Housing Administration (FHA). It was established to loan money for the building of new homes or making badly needed improvements on older properties.
FHA financing was easy to obtain. Anyone having and assured income and a good credit standing was eligible for the loan. The new home loans were set up on long term mortgages and low interest rates.
New improvement loans could range from $100 to $2,000 dollars and be secured on any one piece of property. There wasn’t any restriction on the material to be used or the method of construction that was to be done. Interior equipment for the home could also be purchased if it was the built-in or attached type.
The repayment of the loans could be made from one to five years and no down payment was required. Payments could be made in monthly installments and the size of the installment was based on the borrower’s income.
— researched and presented by Wilbur Bush, Gallatin, MO