HELP! Major Roadblock mid Escrow

[Chelsie Runnings]

Hey BP Community.

I am one week away from closing escrow and by buyer can not get lending on the property due to a mold issue.  The Underwriter approved the loan after the appraisal came in at value but put conditions in place before the loan can go through. 

One Major one being Satisfactory inspection performed by licensed contractor specializing in mold hazards, all health/safety issues to be resolved and Satisfactory roof inspection and clearance.

The Buyer had already planned to do a complete renovation down to the studs, new roof included. He has no problem doing the repairs, but he wants to do them him self, not through licensed contractors.  He has done a few previous properties (3 Right next door to this one) 

He is not open to doing any hard money loans, but he is considering doing some sort of lease to own contract while the repairs are completed, and then take a loan out. We just found out about a notice of default that was just recorded as well.The seller is the court appointed administrator administering this Estate. He and the buyer know each other very well, and work fantastically together and both have the end goal to just close this property and move on as quickly as possible.

I am looking for any suggestions to get us to close escrow so my client can start on his renovations. Any Lenders who would work with us in this particular situation?He was planning to do 20% down.  We have explored a lender hold back on funds, but that doesn't address the need for a licensed contractor, at least to those we have spoken too. 

Suggestions or advice are appreciated!

TIA!