Lender giving me problems with a cash-out refi - other options?

[Wesley Canhedo]

I'm 1 year in on a home with a 3.375% 30yr fixed mortgage, the property is worth about $480k and I have about $80k in equity.

I was planning on doing some major renovations and an addition which would bring the value up to $750k-800k+ easily in my neighborhood, but it will also cost around $120k. 

My plan was to take some hard money loans for the work and then a cash out refinance at the end to pay the loans off, but my lender is saying with COVID now its impossible to do that. My other option was a HELOC but the equity I have wouldn't cover the costs.

Any suggestions?