I understand you frustrations. It is hard when you find the home you want then there are problems with financing. I advise using a realtor that is experienced with FHA financing. Also, your agent should be able to help you negotiate with the seller to relocate the well, hook onto public water or even order a new survey which might result in the extra footage you need. There are always options. Are there other financing options? Be open with your agent, share your frustrations and work together for a solution. Unfortunately FHA has strict guidelines; fortunately they are for our protection. Good luck.