I hope you're understanding there are 2 issues here and we're flipping between them because we don't recognize the term "nonwarranted, non FHA approved"
A. Properties that have multiple owners, like a condo or a townhouse, must not be owned mostly by investors. FHA will not approve a loan on properties in that development until the percentage of owners rises above a certain level. Condos where you can buy are "FHA approved".
B. FHA will not insure homes that have certain defects in them. Usually these, as Becky points out, are HUD foreclosures sold as-is, and are labeled "uninsurable". Those defects can be corrected using a renovation loan. FHA has a 203(k) loan that sets aside an escrow account for the repairs to be done after closing. Only certain lenders will offer a 203(k), because they are a lot of work on the lender's part.
So, if the problem is "A" (that the property is owned by too many investors and is not approved for FHA loans), there is not much you can do except use a conventional loan.
If the problem is "B" (that lender-required repairs must be completed to qualify the property), you can use a 203(k) loan from a lender who offers them. By the way sometimes a 203(b) will actually work, too.... more
Without knowing the particulars of the property it would be difficult to give an answer that fits the situation.
It's possible the house is appraised well under market for its amenities and condition, but on the other hand the tax appraisal could be accurate or above market. Please remember that sellers don't offer properties at the lowest price they'll take - the list price is usually the highest they think they can get. Some will come down from that, others won't.
Ask your Realtor what comparable houses are selling for and from that decide a negotiating starting point.
Check out the area and prices at www.DallasHomeValueReport.info... more