Some lenders will require secondary appraisals, or a desktop appraisal, will want to see some sort of improvement on the property, and may have cash out restrictions. 

Here in St Augustine, they are banning certain neighborhoods, and putting restrictions on others.

You can cash out after 6 months from date of acquisition, but only up to the limited LTV restriction of 50%.

It seems odd

Regardless the odds of redemption are so low that it is worth taking the shot, just dot your I's and cross your T's and document everything well with before, during and after pics.Good luck.

I understand there are sq. foot restrictions based on the loan type.  

Put in the effort, build relationships, prove your value, and improve your odds of finding someone to help launch you on your path.

If you have to ask then odds are good . . . it's "all hat and no cattle"However, if they offer a trial or any other way to let their service prove itself, I'd put it to the test.

Now a historical area on the other hand, with restrictions... this makes me look at what I will have to do and the extra steps I would have to take to do it. 

I also had an odd event where Statefarm cancelled my coverage and required I get a roof inspection.