Brenda,

I am not sure why Realtors do not want to work with an FHA buyer. The underwriting does not take any longer than it does with conventional financing. Property condition should not be an issue either - we are seeing almost the same requirements for FHA and conventional underwriting. Purchasing a condo might be a bit trickier with FHA - the development must be approved for FHA financing. This obstacle can often be overcome with a Spot Condo Approval for FHA financing. I would recommend finding a buyer's agent that is FHA friendly

FHA shouldn't deter you and I don't know why it would agents. I don't know what the home pricing is like for that area, but the only thing the agents will have to do, is make sure that the properties they take you took look at are FHA approved. That's fairly easy to determine as either your mortgage lender can check for you, the agent can ask the listing office or your agent may contact the condominium managment office.

I have closed 3 deals involving FHA this year and had only minor issues with 2 of them since they require some extra safety steps (one of the houses had peeling paint and they required that it is repainted before closing).