My first good deal needs financed! Help!

[Trevor Smith]

Hi DFW,

I have a house under contract for 105k. ARV is 160k. Rehab is 15k. I plan to do a wrap around mortgage with a buyer that cannot get financing, and seller finance to them. The ironic thing is that I also cannot get financing. My and my parents' cash is tied up, and our debt to income ratio is too high for another loan we've been told. But all of our debt is good debt in cash-flowing rentals. It just takes a more savvy banker to realize that, apparently.

I can find a buyer with the help of someone who has a business doing seller-finance that will pay 10%-11% for two years and then they can refi with their newly-built credit. I will have the cash flow in the difference between their interest payment to me, and my interest on my loan, for those two years PLUS the equity gain when they refi and pay me off. That is the plan anyway. 

Ideally, I can find 20k to put down, and 105k(65% loan to value of ARV) loan to cover the house and rehab. My parents and I all have great credit. Can anyone recommend a bank that will talk to us about this, or know anyone that has 20k to loan to us at no more than 8%?

I'm also told most smaller banks are going to turn me down if I tell them I plan to wrap it because smaller banks like to use the due on sales clause. But big banks aren't going to play ball. So I feel pretty stuck! 

I am not interested in hard money. The other problem is that closing is on August 8th! 

Any help much appreciated!
I don't want to see this first good deal slip through my fingers. 

-Trevor