Lender wont let me Cash out Refinance with 6 financed properties

[Gary Burnham Jr.]

please help me get to the bottom of this.  I currently have 6 financed rental properties. 1 is owner occupied.  I am trying to do a cash out refi on the 2 most recent purchases to get the cash out I spent to fix them up.  Lender says sure we can help.  After purchasing appraisals and going through the process the underwriter says "wait" there's a new guideline in place as of may27,2014 that says anyone with more then 4 financed properties cannot do cash out Refis into a 30yr fixed  on investment properties.  My only option is to do a cash out with a 3/1, 5/1, or 7/1 arm.  The lender then said I could refi again into a 30 yr fixed in 6months.  My thoughts are to shop around now but not sure the appraisals will be accepted by a new lender. I feel mislead by e lender they said they could do this.

[Jeff S.]

Seems like there should have been a committment letter from the lender before ordering the appraisal. Was in a similiar situation with Wells and I would not let them order the apprasal until all the conditions were met . The loan ended up not closing and I got my money back.

Being misled is par for the course with bigger lenders these days. There is always someone that doesn't know everything and something crops up that should have been known. Just through all this with Wells, then US, got one loan but equity line fell apart, then BA was misled into applying only to find out it wouldn't work, and then a line with a credit union.

The loan officers are salesmen trying to get people in the door but not good at vetting problems.

If fee appraisal might work but wouldn't count on it.