home.JPGNew Deal Information

HOLC - Home Owners Loan Corporation

Overview- Home Owners Loan Corporation helped people by giving them government loans to help keep them in their houses. Before the New Deal program and the HOLC was established only four out of ten people could afford to own their very own house and be able to keep it. Before the Great Depression when taking a loan the borrowers had to be able to put down 35 percent as a down payment, for loans from 5 to 10 years long with an 8 percent interest. That was it so it was very easy for people to get loans. That is part of the reason the Great Depression occurred because banks loaned out more money then they could afford and the banks all went under. That’s why the Home Owners Loan Corporation went to congress and got 200 million dollars to get people back on their feet. The HOLC was allowing middle class to have up to 80 percent to $14,000 of assessed value. This is exactly what the middle class needed to get everything back together. It wasn’t too much money to the point where it was hurting the bank because there was only allowed up to $14,000. The loans were just enough, the middle class still struggled but were able to keep their homes.

Purpose- Was to help people keep and afford their homes after the great Depression.

Who it helped?- This act helped mostly the middle class because the upper class wasn’t effected by the great Depression and the lower class was helped some but it didn’t make as great of a difference on them because they were not able to own a house.

Link- http://www.answers.com/topic/home-owners-loan-corporation
Contributed by: "TS"