Owner Occupied Flip Financing on REO

[Nate O.]

Went through the process of getting a preapproval on a mortgage/construction loan with a local credit union for a Fannie Mae property. After submitting the bid, the listing agent came back with questions regarding the financing. Turns out that Fannie Mae with not turn on water/allow a gas meter to be installed prior to the closing which makes getting an appraisal on the house impossible for a local loan. Has anyone else experience this issue with Fannie Mae and have a work around?
I ended up pulling financing together through the Fannie Mae homepath program which does not require an appraisal and ended up winning the bid but now need to figure out the financing. Would prefer to use the local since the rates and terms are more favorable. I would appreciate any help/suggestions! -Nate