HUD wont turn on the water - Would you proceed?

[Ramon Luna]

Hi all. Looking to buy a home as primary residence from HUD. I have a signed contract but HUD is refusing to allow us to turn the water on prior to settlement. The lender I had lined up is saying they need the water to complete the appraisal. However, my realtor has contacted to two other lenders / underwriters that say the water does not need to be on in order to complete the appraisal. I was advised to do an air test on the plumbing, even though it is not required to close. Would you buy a house if you couldn't turn the water on prior to closing? Has this happened to you?