HUD home financed with FHA loan offer rejected.

[Maugno M.]

So I made an offer on a foreclosed HUD home. I'm giving them their asking price plus paying all closing costs. I was going to do it with an FHA LOAN.

The listing agent said they had many offers so make it your best so that's what i did. Last week, realtor says that listing agent said my offer is being reviewed and that all others were rejected. 1week went by without me getting confirmation. I called listing agent today and says my offer was rejected. That they had cash buyers supposedly. She said that I'm using an FHA loan and that it wouldnt pass because it had a whole in the roof. I knew all this and was willing to fix the issues.
Should i change my contract to show ima use an FHA203K loan instead or conventional? I really wanted the home!