between black and white americans has widened to 30% and with the average black family having far less generational wealth the fha loans are meant to help shrink the gap. there is a great divide in how people are able to buy new homes. data from a realty association shows 53% of black home buyers used fha or va loans while only 23% of white home buyers did. it is legal for sellers to factor in the type of loan a buyer is using. fha loans can come with too many strings. there are federal guidelines the property has to meet certain standards. they are required to meet the appraised price. reporter: despite the road blocks lynch says he plans to keep up the search. it is about faith really. you know, not giving up and just really having faith that something will come through in the long run. reporter: aaron gilcrest, nbc news, new york. when we come back we ll tell you what when we come back we ll tell you what (vo) while you may not be running an architectural firm,
saying a lot of white folks come in and buy homes from black people. yes, yes. and that is happening a lot. reporter: she believes one reason is that many people are trying to purchase a home using a fair housing administration or fha loan designed to help first-time home buyers. the downpayment is less. the credit score requirement is less. they allow you to have high debt. reporter: instead the loans are making it harder for some first-time buyers. it is a bit disheartening. reporter: kirkland lynch thought he d have no trouble buying a house in brooklyn. stellar credit, money for downpayment, preapproved mortgage from the bank. reporter: but after months of bidding none of his offers had been accepted and he thinks he knows why. some would see the fha loan and simply hey wouldn t get back to me. others would be overly intrusive of my financial situation. i do think they didn t want to do business with the type of loan. reporter: the gap in home ownership
hearing that terribly awry, i was incredibly disappointed both in his preparation and answers not just to me but my other colleagues. instead of getting defensive and hurling accusations to me, i d like him to double down on doing his job, study what s going on with the low and moderate income home buyer program. the most common outcome of an fha loan go to an r.e.o. status. when he said when fha loans go to foreclosure that they are sold very quickly when point in fact clearly demonstrated by industry data is that fha loans that go to foreclosure take