Small personal loan refinanced to conventional?

[Aly Alvarez]

Hi BP community! 

Relatively new member and new to RE investing! This may be a naive question to many, but I'm hoping someone can shed some light. I've located what I find to be a good deal that I would like to put an offer on. The problem is that the home is only $40,000 and estimated renovations were quoted around $25k. I have a down payment, but am running into issues with banks being able to give me a conventional loan for that low of an amount. 

I was advised to potentially seek a signature/personal loan and pay for the home outright, however, would I not run into the same problem when attempting to refinance into a conventional after rehab?

Any help is appreciated!

Regards,

Aly