Lori,
Although I concede that purchasing in the mountain area may pose a challenge for comp issues, I don't see why you wouldn't be able to use FHA financing as long as the property meets all other FHA guidelines I would think you would be fine. You might want to also check for USDA financing. I am not very familiar with it but it could be another option.

Have you spoken to a loan originator that specializes in FHA financing? This person would be your best resource and if they tell you that you CAN'T use FHA or USDA have them show you why.

All my best,
Micki

Lori
The person with whom you should be discussing loans is a lender. Realtors can certainly REFER you to a lender.

Good luck. BTW, the first post was correct. FHA does not "block" zipcodes.

It isn't usually the zip code but the property it self that is the problem. FHA has rule on how houses are built, material used and such. Check with a lender for FHA and they will know. I have the same problem on some properties that my client can qualify for but they aren't FHA approved.