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Home Owners Loan Act
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Home Owners Loan Act

United States [1934]
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Quick Summary

The Home Owners' Loan Act of 1934, enacted during the Great Depression, aimed to help homeowners facing foreclosure. It established the Home Owners' Loan Corporation (HOLC) to refinance mortgages, offering longer repayment terms and lower interest rates. This initiative was part of broader efforts, including the creation of the Federal Housing Administration (FHA) in the same year, to stabilize the housing market and stimulate the construction industry. The FHA insured home loans, encouraging private lenders to offer mortgages with lower down payments and extended repayment periods, significantly increasing homeownership in the United States.12

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2 Britannica Sources
  1. home equity line of credit
  2. Federal Housing Administration (FHA)

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