I am in the process of purchasing a house to “live in flip” that I just found out is “uninhabitable” according to the appraiser that the lender sent for the inspection. I knew the house needed work at the time and expected plumbing and electrical to need work.

We have made it to "underwriting process" and Unfortunately, according to my banker, when the appraiser went onsite he had no electricity (the meter was not installed) and no plumbing, so they cannot lend on the property and will have to "set my file aside" until I get an appraisal for current price, a general contractor for quotes to see the ARV and then go from there.

I had planned on doing the repairs myself as I currently already have a free place to live while I work on and eventually move into this property.

Am I out of luck in this situation? Is my only option to get an appraiser and general contractor onsite and add a 203k onto the loan?

TL:DR - during appraisal before underwriting the lender said I have to get an appraiser and general contractor on-site for 203k loan and ARV. so they can loan on that amount. What Would You Do? Find another lender? Creative financing? Sell the left side of my lungs and pay cash?