One home owner we know wants to provide all of the materials to keep his loan amount down. The way to do that is to increase the down payment to cover those items but he is also trying to keep from paying a contractor markup on those items he was willing to go pick up and deliver to the site for the contractor.
This shouldn't be done. As a consultant, what if the borrower/owner doesn't fulfill their part of the bargain, HUD says we have to have enough money in the project funds to get that done without relying on the owner's participation. We have to be able to get the work done regardless and this scenario doesn't allow that if the owner's circumstances change and they are unable to provide those materials.
Therefore the answer is a big "NO" regarding "owners to provide" as the owner's can't provide anything in the scope for the contractor to install. The appraiser gives no value to an item provided by the owner... which in the case of a washer and dryer wouldn't have an affect but if the owner was providing all the kitchen cabinets and counter-tops, the appraiser would have to ignore the value for those items and the property might not appraise high enough to get the loan. There are just too many reasons this doesn't work.