Getting FHA Approval on a home with a wood stove

Hi All,

Apologies if I'm missing an obvious solution to my situation…kind of new at this!

We were recently prequalified for an FHA loan, put an offer in on a house, and the offer was accepted. All good so far.

The house has a broken gas furnace (forced hot air), and the current owners have been heating with a wood stove for the past few years. As far as I know, a wood stove does NOT meet the FHA's heating requirements. The sellers have agreed, however, to install a new gas furnace at their cost as part of the contract.

I'd imagine that the current owners aren't going to want to install the furnace until we've gotten the final approval on the loan. But from what I've read, the house won't make it through the FHA Appraisal without a functioning heat source (wood stove not included). So, what's the best way to handle the timing on this? Will FHA do some sort of "provisional" approval of the loan, enough so that the sellers feel secure to drop the money on the furnace?

I'll reach out to my lender on Monday, but if anyone has been through a situation like this before and can set my mind at ease, I'd greatly appreciate it!

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