Lender won't approve loan for house with foundation issues?

[Kevin C.]

I'm looking at buying my first buy and hold investment property listed for $130,000 with an ARV of about $150,000. The house needs some foundation (pier and beam) work, among other things, which I am willing to repair after purchasing.

My lender explained they won't fund loans on houses that need foundation repair, but it's possible their appraiser wouldn't mention it since most of the homes in the area are older, pier and beam, with a tendency to shift around. 

Is this common for loans to be turned down because of this? Has anyone run into a scenario like this where foundation issues prevented funding?

I'd hate to drop $300 inspection and $400 appraisal fee just to have the lender turn down the loan after the appraisal.