Where FHA deals can be more difficult, I am having trouble understanding how that alone is preventing your offers from being accepted and, where inventory is very low right now, suspect the $100k approval is what is limiting your choices most of all. 

I just re-upload the credit report that the underwriter has already scrutinized a second time, and tag it as being for that condition like a smart-***.

I'm just happy that I was smart enough to keep half of the original draw or I'd really be up a creek.

If you're wanting to sell it when you move, or use it for equity leverage later, the first choice sounds better.  

Compare that to the last time you looked at your smart phone. 

Success is a process, failure is a choice

My initial reaction is that I would inform the Seller that failing to close would breach the contract, that you are fully prepared to close and will proceed as if closing will happen as scheduled in the contract, and that if Seller breaches the contract you will have no choice but to exercise your right to seek a remedy.

Spend some time on your free "MLS" of choice.

The last 5 years has been atypical with the credit markets and such where FHA was either competitive with conventional loans, sometimes cheaper than conventional loans and unfortunately at times, the only choice for a mortgage.Each bank has their own underwriting standards since again, they are the ones lending the money.  

Lots of other choices as you get around the city and north as well.Had a similar start to you.