You apparently had a contract formed when the bank agreed to your offer. The signed "counter proposal" may be regarded as an amendment to the agreement, depending upon its contents. Your offer to finance through FHA may be considered an offer to amend the contract, and their refusal to accept FHA financing was simply a rejection to amend the contract. Thus, you still have a contract (the "original" contract) with an amendment. There appears to be ample time to close and you have secured...