If my buyer is getting a Rural Development loan: I know we'll have to use an FHA/VA inspector, not chosen by anyone associated w/ the loan. They could come from 50 miles away having no idea of our area, and use bad comps. But it's not just that which worries me.

My question is -- are inspections still a horror story with the government? We have 1920's frame home which needs updating, but it's well maintainted. We would rather re-negotiate with the buyer than make repairs. Her offer was $185 and the house was appraised at $200 last Oct. An appraiser who knows my area well recently told me our housing values around here have NOT declined in that time frame. (Louisiana, we've been spared to an extent). But I'm worried the UW will pressure the appraiser to come to the $185 asking price, leaving us open to further reductions. Does that typically happen?

With this type loan, do all the repairs HAVE to be done before closing, or would she still be able to buy the home if we're not willing/able to do the repairs?