Which program is primarily associated with insuring mortgages to facilitate home ownership?

• A. Public Works Administration (PWA)
• B. GI Bill of Rights
• C. Federal Housing Administration (FHA)
• D. Levittown

Answer: (C)

This question tests how the government encouraged home ownership through housing-finance programs. The Federal Housing Administration is the program built specifically to back mortgages. It provides mortgage insurance to lenders for loans issued by FHA-approved institutions, which reduces lender risk and makes it possible for more people to qualify for loans with smaller down payments and longer terms. This steady support helped stabilize the housing market after the Great Depression and spurred broad access to home ownership.

Public Works Administration funded large public-building projects, not mortgage insurance. The GI Bill of Rights offers a range of benefits for veterans, including loan guarantees, but its mortgage support is through the VA rather than the FHA. Levittown is a famous postwar suburb, emblematic of private development and financing rather than a government mortgage-insurance program.

So, the program primarily associated with insuring mortgages to facilitate home ownership is the Federal Housing Administration.