I am so very sorry. However, I do believe that the universe is out there watching over you - and knew this wasnt the right decision for you. I guarantee you, you will look back and KNOW for a fact that this was the best thing that could have happened. IDK if that is going to be in a month, a year, or ten, but you will see.
Take all you learned during this long process, pull your socks up, after you have given yourself a break, and get back to it when you are ready. I'd think about a new agent. Clearly that person's mistake in my opinion. Or you can have them take your inspection fee out of their commission and give it to you in cash when you DO close, which you will!
I am definitely taking this all into consideration. The properties I have looked at to possible go see if this doesnt work out are actually all cheaper than the house I have under contract, so it might be a good financial decision. As for my agent, I am trying to show her a little grace, she handles her mistakes well, and honestly out of the agents I worked with, she is the one I was most comfortable with- she showed me houses literally like 2 weeks after giving birth, showed up prepared and helped me narrow down the list of homes I sent her so we didn't wast time (granted all agents should do this but trust me they didn't!!). I know in ALL my reseach, I never heard anything about FHA approval, and her primary real estate business has been commercial, and I believe she has handled mostly conventional loans, so I understand that she may be missing some of these details that are unique to my situation. If for some reason she messed up and couldn't get my money back, please believe there would be a new agent lined up immediately!
Thanks guys. Not all hope is lost. Long story short, we are checking to see what the legal description of the property is- condo or townhome.
Condo, we have to terminate and start looking for something else (which we already are looking at listings).
Townhome, we can proceed!
I say everything happens for a reason, perhaps the day after I closed, the pipes would have burst or something....
Just an update incase anyone cared
Per the HOA covenants, the property is considered a TOWNHOME and requires insurance for both inside and outside the home, so we are moving foward because the FHA approval isn't required.