FHA Loan with Foundation Issues - Help!

[Kathleen McCabe]

Hey BP fam :) I have a duplex under contract in an amazing location (Lower Greenville, Dallas Tx). I've been very excited, the numbers are looking fairly good and I feel this is an amazing opportunity. There are tenants in both sides of the duplex now and everything is functioning properly. I plan to move into one side. However, the duplex was built in 1924, and I can definitely feel dips in the floor... Inspector recommended getting an engineer to check out the foundation. 

Is this the kiss of death for my deal being that I will be using an FHA loan? Are there ways around this? For example if I get a quote for the foundation and negotiate that out of the offer price? Will some lender still work with me regardless of the state of the foundation or is an appraisal mandated? I am not afraid to take on a foundation project, but I could not afford to put 25% down on this place for a conventional loan. Looking for a creative solution.

Thanks in advance!

Katie