Lately, our area has seen less REO properties and short sales coming on the market; the ones that do usually need quite a bit of work.  As usual, the folks who are looking find these homes to be priced well; however, they soon come to the realization that the work and repairs needed will be too costly,  Many are using FHA loans which will require the buyer or seller (if you're lucky to get the bank to agree) to pay for the repairs.  "As Is" means exactly that, the bank is selling this property in the condition it is; you should be prepared then to do the repairs.  This is where FHA 203K loans come in handy.  Here are some Available Improvements cited by:

 Cedric Johnson
 Branch Manager
 FHA 203k Specialist                                                                                   CJohnson@WestStarMortgage.com

You should consult with an FHA lender on FHA loan guidelines

FHA 203(k) Streamline - Available Improvements  

• Repair/Replacement of roofs, gutters and downspouts
• Repair/Replacement/Upgrade of existing HVAC systems
• Repair/Replacement/upgrade of plumbing and electrical systems
• Repair/Replacement of flooring
• Minor remodeling, such as kitchens, which does not involve structural repairs
• Painting, both exterior and interior
• Weatherization, including storm windows and doors, insulation, weather stripping, etc
• Purchase and installation of appliances, including free standing ranges refrigerators, washers/dryers, dishwashers and microwave ovens
• Accessibility improvements for person with disabilities or handicap
• Lead-based paint stabilization or abatement of lead based paint hazards
• Repair/replace/add exterior decks, patios, porches
• Basement finishing and remodeling, which does not involve structural repairs
• Basement waterproofing
• Window and door replacements and exterior wall re-siding
• Landscaping or similar site amenity improvements - however, streamline "k" cannot be used for erosion control
• Self Help Streamline "k" is discourages.  Only 75% of self Help complete improvements 

Improvements which REQUIRE an FHA Consultant and a Standard 203k loan 

• Major rehabilitation or major remodeling, such as the relocation of a load bearing wall
• New Construction (including room additions)
• Repair of structural damage
• Repairs requiring detailed drawings or architectural exhibits
• Landscaping or similar site amenity improvements - use Standard 203k for Erosion Control
• Any repair or improvement requiring a work schedule longer than three (3) month; or Rehabilitation activities that require more than two (2) payments per specialized contractor.  That would necessitate a "Consultant" to develop a "Specification of Repairs/Work Write-Up"
• Improvements which require plans or architectural exhibits
• Improvements which require a plan reviewer
• Improvements which result in work not starting within 30 days after loan closing; or cause the mortgagor to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted.  (FHA anticipates that, in a typical case, the borrower would be able to occupy the property after mortgage loan closing)