Do i need 20% equity to refi out of a seller finance deal?

[Jimmy Lieu]

Hi BP community,

Let's say I did a seller finance deal with 5% down and I finished rehabbing the place after a few months, and I am ready to refi into a bank loan now. Let's say that I only have 10% equity by the time I want to refi. Do I need to make up for that additional missing equity to fulfill the 80% LTV?

And would I need to bring cash as a down payment to make up for the 10%?