I am sorry to hear of your situation. Eight months iis definitely a nightmare. The majority of my loans close in 30 to 45 days. Be honest with yourself at this point. MOVE ON. Get involved with a local mortgage broker who will provide good customer service, I can do deals in Strousberg but if you want someone closer to you I can recommend someone for you to work with. I don't think it will cost you any more money. An FHA appraisal will be transferred but after eight months your appraisal is useless anyway.
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If something starts out like a bad dream, you can count on it becoming a real nightmare. If it starts out as a nightmare...Man you're in trouble!
I don't personally have any experience with them but what I can say is this, start looking for another lender.
Depending on where in East Stroudsburg your new home is, you may want to look at the no money down USDA mortgage.