If the property won't pass as habitable (this is not your definition either) and/or you can't get the certificate of occupancy, you will have to use a rehab loan to purchase this property.
We do have another product that is geared dowards investors if that's your plan but you'll need more than the 3.5% FHA requires for this loan. If this is really what you need, let someone at Wells guide you such as the person who pre-approved you (if they're a Renovation Specialist), Will or Myself. If you're moving there to be your primary residence and the property is FHA 203B (normal FHA loan) financeable, then go for it and don't spend the extra money to get a 203K if you don't need to (I'm a Renovation Specialist and I'm telling you this so hopefully you agree that must be a true statement =). If you'd like the property to be fixed up/updated/changed to your liking, great, get a 203K, finance it all into the loan and call it a day!
If you feel comfortable with Wells just stick with them.