There is an "arrears" that has to be identified and paid out of pocket before the sale or the loan needs to be paid off in full. 

I couldn’t figure out who had to even sign the loan docs let alone the personal guarantees. 

@Nate Jenks no problem, here to help and clarify.When we speak to "cash out" loans in lending the maximum loan amount is usually 80% LTV on a primary home. 

Quote from @Zachary Deal: One thing to keep in mind if you are doing this is that you are likely to create "functional obsolescence" which could mean you are not able to get a new loan against your property and it can be difficult to resell as well. 

Here's a quick summary of the Fannie Mae Home Style Renovation Loan:The Fannie Mae Home Style renovation loan program can finance the purchase and renovation of a home in one loan.

I am curious if I can use a DSCR loan on such a small apartment building?

It depends on how long it takes you to complete the rehab and what type of loan you take for the refinance.

They have unsecured creditors of over 5 million dollars and secured creditors as either loans on properties and/or owners of properties.

@Ahmed MoustafaThe general Fannie Mae guidelines you mentioned are for non-renovation loans. 

I have access to a VA loan but I like where I'm at now and don't want to do another move right now.