The words “as is” can be scary, especially when buying a home in today’s market, where foreclosures and short sales that need fix-up work are plentiful.

But a little-known Federal Housing Administration loan program that’s been around since 1978 can help take the sting out of “as is.” Only 219 borrowers took advantage of the FHA’s 203(k) program in 2009. Not many lending and real estate professionals are aware of the program, observers say.

Last year, Tom Meyer found a classic Oakland home built in 1925. As a short sale, it was priced right, at half the original asking price. Trouble was, the place needed foundation improvements, dry rot work, a new roof over the garage and other improvements.