How do lenders define "habitable" for a property?

[James Andrews]

I'm under contract to buy a house for $140k, that needs $50k ("high" guess) of repairs, to bring an ARV of $220k ("low" guess).

I had a 3y balloon loan lined up for $100k, but the local bank backed out after seeing the interior, because the house isn't habitable. I can make the deal work anyways, I have the cash to buy it outright, and can spend the first 3-4 weekends of weekend rehab doing demo, bleaching walls, patching minor drywall issues, painting walls, refinishing the wood floors, etc. 

What else does an appraiser want for "habitable"? Does it have to have a stove installed? Fridge? Just an obvious place for those? Cabinets? Etc.?

I can easily visualize that 90% of the "omg this is a dump" is mostly elbow grease... sure there might be structural, HVAC, electrical, etc. issues that I'll have to address, but never had an appraiser go "I don't like that crack in the foundation". 

I'm asking all of this because I'd prefer to get it in good enough condition to get the balloon loan on it, versus trying to scramble for an expensive hard money or personal loan. The lender already said she doesn't care about reimbursing me directly, since she wasn't going to be able to close it in time for next week.

I'm treating this first real, deep rehab as a learning experience... sure I want to make $ from it, but as long as I make SOME money from it, I'm going to learn a helluva lot during it.