FHA Appraisal Kicking my A** on house I'm Selling.

[Maugno M.]

So i have a SFR that i completely remodeled and have under contract for 65k. We are suppose to be closing next week and the FHA Appraisal just came in. The appraisal came in at 67k so we are good on that but they are asking for some ridiculous repairs that i don't intend to make. The house sits on a hill, so water runs down. I The whole neighborhood of houses in this block have this same thing, so it's not just my house.

1.Well Appraisal says that drainage needs to be fixed because it was noted that water was coming in through garage. 
2.The driveway needs repair and correct erosion problems noted at inspection. 

Drive way would require me to pour new slab of cement. as well as that drainage deal.

I was selling home AS IS, in regards to the landscaping. The buyer knew this and went several times to evaluate before they signed contract. Buyer told me her father said they could fix the things on the outside before they signed agreement.

When we had the inspection with TREC, everything came back fine. So why is the appraiser buttin in... is it normal for FHA loans to be this strict ? Maybe I shouldn't have accepted an offer with an FHA Loan.

What can i do to get this deal to the closing table ? even if i reduce price wouldn't repairs need to be made in order for the FHA loan to move forward?