HELP! Bank won't loan unless move-in ready

[Virginia H.]

I have come across what may be a fantastic opportunity for a flip ( **I HAVE NOT YET LOOKED AT THE HOME SO I AM NOT CERTAIN ** ) ... purchase price and rehab costs come in around 66% of resale value and the average time on the market in the area is approximately 60 days.

This house is not yet on the market.

Asking $50,000

Rehab - about $30,000

Sell - $120,000

I contacted a lender and was told the house must be move-in ready AND I must have enough funds in my personal accounts (be it savings, 401, or whatever) to cover all expenses (mortgages (my home and this one), car, loans, etc) for at least 6 months.  

Translation - based on this information I not only can not obtain a loan through this lender because they will not loan because it is not "move-in" ready but I can not even use my small reserves as the downpayment required.

I'm now officially stuck... Can someone please advise as I had not anticipated these situations.