I won't speak to the race issues but as a former realtor I dealt with FHA loans and they have asinine restrictions on them. I had to get local ordinance exceptions on a number of issues to get a loan approved for some buyers. It was a mess. They required certain lot sizes and certain dimensions. And while FHA has lost its luster a bit over the decades, it used to be a much more common type of loan, as it was one of the few ways to buy without putting a lot of money down.