How to get FHA backed loan work with REO?

[Mike Berlay]

Hello,
We are planning to make an offer on REO. Property don't have major problems, but I think there will be issues passing FHA inspection. (garage converted to room, illegal)
I really want that property and the only options for me to go with FHA. I will live in house.
I know banks don't like FHA, because of inspection.
I'm planning to get certified FHA inspection. And submit offer with inspection.
The question is: what I have to put in contract to make repairs done before closing. I will pay for repairs.
Any other ideas?
Thanks to everyone.