Refi + Cash out struggle due to COVID
As the title says, I'm struggling to refinance while pulling money out from my equity. The two main issues I am having are that 1) banks are not doing cash out on loans that they do not own and 2) the amount of money that I need to borrow.
Here's some back ground:
Currently, I have 2 mortgages. One is my primary residence and the other an investment property.
Investment property: Bought for 180k (current value of 300k) @ 5% with an FHA loan with an outstanding balance of 10k. It's labeled as a manufacture home build in 2003. Reasons lender's underwriter won't accept are: 1) is an investing property, 2) it's a manufacture home and 3) require debt balance that I must have (150k). Because my current balance is so low, I would need to pull out 140k.
Primary residence home: Outstanding balance is 7k. Home appraised at 370k. Primary issue is that the bank holding my loan is not offering cash out with Refi because of COVID.
I though of paying them off and doing HELOC, but the interest is higher than I would like (4.5%). So I'm avoiding that route.
Given my options, what is the best way to pull money out from my equity to invest in a third property.
PS - I live in SLC, Utah. The typical home value for entry homes here is around 350k