Financing options without water activation

[Salley Smith]

HUD has recently ratified our contract, and we now have 2 weeks to get financing. However, the listing stated "water won't be activated for inspections/ apprasials." Apparently, there was a recent leak somewhere in the house after HUD did their initial inspection. The selling broker only knows there is a leak, which probably hasn't caused significant damage, and nothing more. Our agent has contacted HUD directly, or the third party that works with HUD, and they state we should be able to pay for the water to be turned on, and there is no leak they are aware of. I'm not sure if this means they fixed the leak, I know they typically don't do repairs. We are worried that if we do a conventional or FHA loan, that they won't give us the finacining since the water isn't on/ there is a leak/ it fails the pressure test. I really don't want to have to do 203k, since it is an extra 300 a month. The house already needed 4400 dollars of repairs prior to this leak. What are my options? Should I pay to turn on the water and have a conventional apprasial, or what would you recommend? Thank you.