Foreclosed Property and the FHA 203K Loan?

I'm very interested in a home that is lender owned. This particular property needs quite a bit of work. In order to cover these expenses, I would like to take out an FHA 203K Loan. My question is this: Can you even take out an FHA 203K loan on a foreclosure property when the Purchase Agreement states,... show more I'm very interested in a home that is lender owned. This particular property needs quite a bit of work. In order to cover these expenses, I would like to take out an FHA 203K Loan. My question is this: Can you even take out an FHA 203K loan on a foreclosure property when the Purchase Agreement states, "Buyer's are purchasing property AS-IS"? I had assumed that homes like this are precisely what FHA 203K loans are for. I was speaking with someone at my realtor's office, however, and she had stated that some sellers won't accept this type of loan. I am confused.
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