No, that is not correct, unfortunately: if the amount appraises for less, the seller may CHOOSE to sell it for less, in order to ensure that the seller can get financing and the sale go through, but he doesn't have to--we can hold firm at the price and refuse to sell.The home, for FHA, must be move in ready: no requiring construction to make it legal (e.g. code) or safe or healthy for someone to live there. Paint can be old, but not peeling; bathrooms can have old fixture and need updating, but must work; etc.