Lenders only wanting to lend 80% of purchase?

[Samuel Coronado]

I keep running into a road block. I am on my first BRRRR and the issue is lenders keep only wanting to lend on 80% of the purchase price and not the actual appraised value, which would keep my money tied up on the rehab portion as well as 20% of the purchase price. Is there a way to get the 80% of the appraised value out? Is BRRRR dead with institutional lenders? Or am I missing something?

My personal credit score is a 780 and I have multiple other properties but still not busting the DTI metric.

[Matthew Crivelli]

Non-QM DSCR loans will allow you to refinance the property at the newly appraised value after 90 days from the original purchase IF you took a loan for the initial acquisition. IF you bought the property with cash, you typically have to wait 6 months from the original purchase date. The few lenders that offer no seasoning, they typically make you pay for it in high rates / fees. Typically it's better to let it season.

On the FHA side, they want you to wait 12 months.