As several other agents have chimed in, it's the short sale that is the issue here, Natalie. I had a listing just close with a FHA buyer in less than 3 weeks. FHA loans may even take less time to close than a conventional in some cases. Also, if the seller has more than on loan on the property, this can take even longer.
-Lisa

Natalie, From your question it appears you are waiting to hear from the Bank which holds the loan on the property your are trying to buy as a Short Sale. That is where the delay is coming from, not your already approved FHA loan.
Lenders considering Short Sale offers will typically take 30 to 60 days or more to respond to an offer and that short a time is only is the Listing Agent has presented all the required information along with the offer. In my experience this is seldom the case.
On a Short Sale offer you should have been advised to expect at least 60 days before a response. This delay is nothing to do with FHA.
Bill

Natalie,

FHA recent stats are that is takes about 5.4 weeks from the time the file is received by the underwriter. There are extra documents and many times a second appraisal is requested which takes any where from 2 extra day to 7 extra days. A good loan officer can make a difference. A file that is sent complete and within guidelines will move faster than one missing documentation or on the edge of guideline parameters.

Some lenders are simply overwhelmed and are taking longer. It is a frustrating process but stick with it as it behooves all to make the contract happen if at all possible.

From your question, it seems you are stating the short sale lender is taking longer. That is very common. Which may have nothing to do with the fact you are using an FHA approved loan.

CJ

This could be a longer answer, but basically anytime you involve government in the lending process it can take longer. They have stricter and different requirements than conventional loans.