203k Loan for a Fannie Mae Property

[Nick Foster]

Hello All, 

I recently got a verbally accepted offer on a fannie mae home. My offer was with a 20% down conventional loan program. Fannie Mae came back to us an said the home must be sold with a 203k Loan because the plumbing failed the air pressure test. Otherwise, the home needs absolutely nothing to be livable. The carpet, paint, etc is dated but 100% livable. 

Additionally, after personally inspecting the plumbing all copper piping was there and connected. It appears to be loose valves somewhere in the system, a very minor fix in my opinion. 

My question, what can we do at this point? They are not accepting conventional financing yet the repairs needed to the home will not total 5k$, the min repairs needed to qualify for a 203k loan (unless the appraiser makes us fix stupid stuff like repaint, recarpet, etc then the 5k could be possible somehow) 

To top it all off, I am a licensed, insured, and bonded contractor. 

Any words of knowledge would be appreciated. 

Thank you.