Fannie Mae 120% Financing Clause

[Danny Day]

Has anyone ran into this issue with Fannie Mae? They have a clause in their contract which states you can not finance more than 120% total of the contract price of the property...

So on my last deal, I purchased for $65,000 and could only borrow $78,000 total. That left me about $6,000 for rehab cost, when I needed about $30,000.

How do you work around this?

Danny