... I think we got the house!! :-D
FI just called and said he told the realtor to accept the counter-offer, and hoped I wasn't mad he made the decision without me. They bumped up the price $2K (still below asking price) and wanted higher earnest money on our part, which is no problem at all.
So I think it's ours!! FI's bringing the earnest money check to the realtor this evening. I can't believe it!
Thank you knotties for all of the good vibes the last few days!
ETA: It does need to pass FHA inspection, but the sellers had it pre-inspected to qualify it for FHA buyers, so hopefully there won't be a problem there. Our realtor didn't seem to think there would be.