Deed restrictions/fha

[katieandallycat]

We are working on purchasing a house. It is a REO, we got approval on our FHA loan, and then found out it is deed restricted when the title company release some paperwork(7 weeks after our offer was accepted). We happened to qualify for the program and after much running around manage to get the proper paperwork turned in. Then it went to the underwriter for the clear to close, they said they can't fund it, since it's deed restricted? Our loan officer asked for the reference guidelines, and the underwriter couldn't give her any. Now we are in nasty limbo as it has gone to government review, it's been there for 3 days, without any word.
Does anyone have any guideline for this?