USAA will not finance until repairs are made!?!

[Stephanie Foret]

Ok so my husband and I are about to purchase our first rental house. We were supposed to close on 06/10/2013. The appraiser gave an after repairs are made price I'm not sure if this makes a difference or not. We just got a call from USAA telling us that they will not approve the loan until all of the repairs have been made and e-mailed the list. I can understand code violations or things that would cause harm or injury to someone but cosmetic things are also on the list. Why would they require this? Does anyone know a way around it with out loosing our deposit we have to the bank? Or does anyone have any advis in general? USAA told us that the seller should fix the property and then renegoiate, but the current owners want to sell as is.