FHA and appraisal, with non FHA approved issues help

[Thanh Hong]

Hello all,

Looking at purchasing my first home , but have some issues/Concerns that we're raised around FHA approval. My only options is FHA, due to a credit problem I had several years back that I've slowly bounced back from.

To provide context, the seller is selling due to family emergency. We’re not sure what but are aware there’s a sense of urgency. We are also renting and our landlord is selling the house in the next two months .

During the home inspection, the inspector found the garage was concerverted to a living area with two bedrooms.

The outside of the house has missing wooden siding in area and some areas have been replaced due to new windows. The home inspector thinks it’s an issue for fha.

Secondly, there is exposed live wires in the main house attic and remodeled garage attic.

The sellers realtor has been a bit difficult to work with. She advised to us prior to paying for an inspector, that the house is FHA approved, which is why we moved forward to pay for an inspector and put an offer in.

We’ve come in 25k lower than asking, based off historical data in the area. The sellers realtor now says it’s “as is” and the seller does not want to put any money into it.

Lastly, the remodeled garage never had actual permits pulled; only a letter from the town building commissioner stating it has been passed per his review without any permits being pulled. My realtor has never heard of this until we saw the letter, signed and dated by the commissioner.

What are the options or possible outcomes that can happen from this or can we do to get this house? FHA 203k is out the picture (credit just below minimum)

Thanks

Thanh