The choice is yours, unfortunately it is harder and there are more stipulations/contingencies on an FHA loan than a conventional loan which is probably why they took the other offer. If you were madly in love with the home wait it out and see what happens, if you were not, keep looking... you will find someone that will accept your FHA financing, as it is a huge part of most markets today. I hope this helps best of luck. Always consult your own Realtor for the best advice, or a licensed lawyer for legal advice.
If status has been changed to Pending no reason to wait.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors