Hmmm...this new "news" is a bit interesting. We are still waiting for the termination paperwork that was supposed to come this afternoon to cancel the sale, but in the meantime we have decided to relist our house and (of course) find a new agent. DH grabbed all the realtor business cards that had been left when they showed our house and just picked one to call. Turns out it was the agent who we had the other offer from - the one we got at same time as this one we accepted. She said her client really wanted our house and was so disappointed, and now has an offer on another house they are closing on soon....but get this....she said that her client was a conventional financing buyer, not FHA. We were told it was also FHA! I still have the email/paperwork on it from our agent stating that. Honestly, if had said conventional (even though it was about $2500 less than other offer) we would have taken that offer over an FHA buyer, for sure. She also said at the time she knew there was another offer in and told our agent they were willing to "put their best foot forward" on it, but our agent kind of blew her off! OMG.