For a cash-out refinance, a hard money lender may be the answer.
Recently, we were able to help a borrower who found himself in this exact situation. He owned a free and clear, fully-leased commercial property and approached a local bank to make him a $500,000 loan, equal to about one third of the property's value. Borrower had a good financial statement and a good credit score. Because the loan would be a cash-out refinance, the bank said no but offered a solution for the borrower. The loan officer told the borrower to go get a hard money loan for $500,000, let the loan season for a few months and then come back to the bank. The bank would then have no problem refinancing the $500,000 hard money loan at a lower rate because the bank's loan would not be a cash-out refinance. Twisted thinking on the bank's part since the end result is the same. The borrower ends up with $500,000 in cash-out loan from the bank. The borrower just has to jump through a couple hoops to get it accomplished.