The Realtor cannot say there is nothing wrong with the house. Did they have it inspected? Check the plumbing? The electrcal? No, they didn't.
Your lender is right to have concerns, but that doesn't mean there are not ways around them. There are several lenders who lend on Homepath homes on a regular basis. These are regular everyday lenders. There are "things" you can do to see what is wrong with the home prior to placing a bid, but it is best to have a Realtor on your side to guide you (no cost for a Realtor to represent you as a buyer).
The fees you are talking about I'm not sure about. Are you talking about FHA203K? You can contact me directly and I'll see what I can do to help, I'm just down the street in Colorado Springs.
Your Realtor and Mortgage Professional that you have working for you should be able to answer these questions and ensure that your financing process goes smoothly with this Homepath property.
I really would not put any stock whatsoever in your Realtor telling you "nothing is wrong" with the house as you have your own inspection period to get your home inspector in the home to do an assessment of the home and to let you know if there are any concerns.
Through this process you should be able to get a gauge of if the home has any major problems and if your financing will go through.
Let me know if you need anything and feel free to search for homes at http://www.brookehengst.com.
REALTOR, CDPE, The Elite Team
Your Castle Real Estate
While their homes are sold "As-Is", you will have ample time as an owner-occupant to have the property inspected after the offer is placed. I never recommend spending money for an inspection before you have an accepted contract. Once you have the inspection, you can decide whether or not to finance any needed repairs. I believe they allow you to finance all your repairs except structural. The mere offering of the loan does not mean the house has problems, it just means they don't know the issues but there doesn't appear to be structural issues.
Mark Atteberry, Expert Louisville Realtor