My wife and I bought our North Petworth (7th and Farragut) rowhouse with an FHA loan in October of 2010. Our house was only in so-so condition. It was safe, but it was very “meh” when we moved in. We had no issues whatsoever. I think FHA is basically looking for safety issues. Ugly tile=fine. Hole in 2nd floor floor that goes all the way to the basement /=fine.
Welcome to the neighborhood!