As far as banks giving any concessions, that varies byt he bank. Some do some do not. Most would prefer straight cash deals so walking in with an FHA loan already puts you a notch down on their list with other offers. Adding concessions is just one more dtep down on the list.
There is nothing saying that just because a bank is not willing negotiate price, that it is overpriced, but yes, sometimes they do go for less. In our case we paid exactly what the list was. Some banks just have a very straight forward listing policy. They set the price they need to clear and that is the starting point. In most of these cases, the home is probably listed for a bit less then local comps if they are unwilling to negotiate. If a home is truly overpriced, banks will negotiate (At least after the first month or two on the market)
More than likely, FHA would requre the porches fixed so an allowance would not do it, the repairs would have to be made (unless it was an FHA 203 home rehab loan) FHA will not fund a property that is not habitable and a sagging porch and one that needs rebuilt would probably fall under that. More than likely the bank is not ogin to do the work not over money, but liability. They want a quick and clean deal and would rather take a lesser cash offer than deal with the hassle of FHA as well as the liability involved with having those repairs made. If you can get a 203K loan that may be an option as those loans are specifically for rehabbing a house.
As far as the offer price, what is it currently for sale for. You showed a price from 6 months ago. Is it still for sale, and if so what is the current asking price? Typically much more than 10% below asking is just a waste of your time unless you are a cash buyer, so if they are asking 200K a 110K offer with 15K in concessions probably would not even be responded to. Banks have gotten pretty good at marketing homes in most cases (alot different from the beginning of the bust) and are not likely to price a home at 2x it's value. They will market it for roughly the appraised value of the home. It does them no good to mark it high, loose possible buyers, and waste time only for a loan to fall through because it does not appraise high enough. (BTW, tax values have absolutely nothing to do with a homes value....) Not to say the 200K price was not too high, but just that to really lowball, you bettter have cash and no conditions. The deal you are presenting is only 95K cash to them MINUS realtors fees and with alot of extra time and liability.
As far as USDA, I do not believe there is PMI of any kind. I could be wrong. As far as income, where are you getting your income from. If someone got a raise last year in your household, your year end income (w2) may be different from what your yearly income is now and that is what they go buy for max guidelines.
