HUD 'as-is', FHA lender required repairs (appraisal, agent, advantage, Realtor)

[kitsunegames]

We're trying to buy a HUD home selling 'as is' with an FHA loan(Not a 203k) and we want it closed by the end of this month. We paid our lender $400 for an appraisal, but instead of having one done they took one they already had done two months ago and listed off things they wanted us to do before they'd resend the appraiser and then possibly lend us the money. Such things as:
Remove the abandoned trash(Already done before we saw the house)
Fix the A/C
Install one smoke alarm
Install a handrail for the three steps to the porch(Unnecessary per building code, but an FHA requirement that every step have a rail(stupid imo))
Get the pee smell out of the carpet(Which we told them we will be replacing with new flooring before moving in)

Sat. 10/10
So luckily my brother is an A/C technician and after looking at the unit for a few minutes knew it only needed a new thermostat, which he happened to have an extra one, so that was cheap and easy.

We bought a smoke detector and installed that ourselves for around $40.

Sat. - Mon. 10/10-12
Then we worked for three days trying to get the pee and poo stains out of the carpet. We got tons of dirt and most of the stains visibly came out but we only managed to weaken the smell a little.
So we called our lending agent and reminded him that we were going to remove the carpet and install new flooring before we moved in, and asked if the smell could be forgiven. He said he'd talk to the appraiser.

We told him we didn't want to spend any money for a rail if the smell would be a deal breaker as we'd just be throwing more of our money away. As it stands we could be losing over $1600 and several days of work. Also our Realtor agent wants us to get the rail now because she has the power turned on and doesn't want to have to extend it for the appraiser.
We called the lender again today and asked about it but he side-stepped the question. So anyway, I don't know if this stuff is normal, first time buyers, but it's been mighty frustrating jumping through every hoop and this recent thing is probably minor but I'm feeling taken advantage of and I'm almost willing to give this house up I'm so vexed.

It seems to me like they're throwing a lot of excuses out there for not lending us the money, like they don't want to. But at the same time they tell us they really do want to lend us the money.

What say you?


I think I may be going mad.

[rjrcm]

I'd say you took a big risk making repairs before you own the home. Sounds like your lender knew from the previous appraisal that it would not qualify for FHA without the repairs. You've already got $1600 into it. If it's a minor amount more to get a good appraisal that passes FHA requirements for loan approval, it may be worth pushing ahead.

[FalconheadWest]

I've never seen "pee smell" as an FHA killer. THat's ridiculous. However, you can leave bowls of vinegar around the house for a couple of days and the vinegar will soak up the smells, some of them at least.

As for the handrail, I have a seller doing that for my buyers right now, and all we've asked for is a 2X4 with brackets put up against the house because the buyer will remove it after closing. Make sure it holds weight. If you don't want the handrail, don't go spend hundreds of dollars on one. Put a temp one up and they can't ding you for it.