(FHA) Federal Housing Administration The History BEHIND (FHA) Federal Housing Administration Congress created the FHA Mortgage Programs in 1934. The Federal Housing Administration became a part of the Department of Housing and Urban Development's 1965. • When the FHA was created, the housing industry was Null • Two million construction workers were out of work • Financing Terms were difficult to meet for homebuyers seeking new mortgages. • Borrowers could only finance 50 percent of the... Read Full Story