The listing should say whether or not FHA is OK. But I'll bet they are checking it off as OK with the seller. Your agent should know the general guidelines for an FHA home, so at least while you two are touring you can rule out the ones in unacceptable condition. I believe the market will be cooling down in about a month: either the $8000 credit will be extended, or it will expire on 11/30/09. First time home buyer demand was artificially pushed forward because of the credit.

The market for lower priced homes has really heated up in recent weeks. You are not alone when you say you have seen a lot of homes and they are selling out from under you at above asking price. Many agents identify when a home is not qualified for FHA since so many buyers out there have to go FHA. Ask your agent to screen them for you, that is what your agent should be doing for you.

If you are not working with an agent I will be pleased to help you. I work with many buyers in your situation and I have had some good success in recent weeks finding the right homes for them. Let me know if I can help you. I can be reached at 303-726-1187