Some lenders can be pretty strict with their cash out refi process because of people trying to scam the system.

Scam

I have to be particular of where I buy because I am the one that will deal with the expenses that will come with my decision.Has anyone else encountered this issue when deciding where to buy?

. $100,000 lower means something is missing or they are scamming you.Maybe get another (3rd) bid and see where it comes in.

Has anyone else encountered this problem and what was the workaround they utilized?

https://www.pennlive.com/news/...

Last year, we had a tenant leave, while trying to scam rent relief-- who over 4 years, we waived quite a few late fees, worked with her, had a very positive/easy/happy tenant relationship. 

If so, it might be a consideration.....but as has been said, $20k is not a lot of money, and certainly not worth the aggravation you may encounter......Take the easy one this time, or go find a bigger fixer that is $75k less.

Poor people scamming tax payers is ok, but wealthy people scamming wealthy people is not.

In general, I've seen that paid coaching to learn specific, concrete activities in real estate is very openly expensive and not a scam, while paid coaching to learn introductory principles and big-picture ideas sells itself more than it sells action-oriented knowledge.