BRRRR Refinance Help Purchase Price

[Martin Neal]

Hello everyone,

I need some help. I am in the Chicagoland area trying to do a BRRRR Strategy and having some problems with the lender, First Midwest Bank. I'm being told that the maximum amount of the refinancing loan will be the purchase price from two months ago BASED ON Delayed Financing Exception.

Purchase Price: 42K Rehab Cost: 23K

She advised this was Fannie Mae lending Guidelines and there is nothing she can do.

"The new loan amount can be no more than the actual documented amount of the borrower's initial investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction based on the current appraised value)."

https://www.fanniemae.com/content/guide/selling/b2/1.2/03.html

I would like to get as much out as possible and move to the need deal. I use HELOC to fund this deal.

Can anyone give me some advice on how to proceed ?? Thanks in advance.