Required inspections for 203k rehab loan?

[Account Closed]

I'm looking really hard at trying to buy a 4 plex with a 203k FHA loan. The property needs a lot of work before it can be habitable. Mainly it is missing electrical wiring, plumbing, and HVAC due to thieves.

The realtor is telling me the seller wants a cash sale instead because he is not interested in having the gas and power turned on for inspections. The realtor says this would be required in order to get a 203k loan.

My understanding is that a 203k loan applies to a property that does NOT pass inspections, that is the whole point. Is it really required that the utilities need to be turned on for the inspection before I can get a 203k loan? The utilities have been off for years, and much of the wiring is missing, that's why it needs a 203k in the first place. Can't I just assume they fail and budget for new stuff?