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Selling my house and the buyers changed mortgage type after we all signed the contracts what should I do?

Hey! I feel like this is going to tank our sale but our lawyer and agent don’t seem to think so.
House in NY state, we have been very accommodating to our seller taking time for extra inspections, not rushing them when it took a week and a half for them to sign contracts and send escrow money. Almost two weeks after we signed the contracts their lender and lawyer reached out to our lawyer and said they changed their mortgage type from a conventional to a FHA loan. We wouldn’t have accepted their offer if it was an FHA.
Our lawyer said it wasn’t illegal and our agent was pissed. We are not doing any work to the house before we sell it. Everyone has assured us it will be on the buyer but when I bought this house I was told to go with a conventional mortgage because it needed work and the seller wasn’t going to do anything required to pass the FHA requirements. There’s a few small things we know of like a railing on a mostly enclosed basement staircase and the porch needs to be painted but more things could pop up.
This pushed out the closing date a minimum of two weeks and the icing on the cake is we’re moving out of state and had just put in our final notices for our jobs. We’re about to secure jobs and housing in our new home and I feel like we’re about to make a really bad financial decision by sticking with our buyers. Part of me wants to back out and re-list the house, our agent and lawyer have said if we want to close asap it’s best to see this through. The new appraiser is coming out on Tuesday.
Has anyone else had this happen to them? How did it turn out?
Sorry for formatting I’m on mobile!

submitted by /u/Boozybearbait
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source https://www.reddit.com/r/RealEstate/comments/1w0naqc/selling_my_house_and_the_buyers_changed_mortgage/

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