Not as common and rate is going to be higher but you can get purchase & renovate loan. I noticed Wells Fargo offers. If rate is just ok, then you can try and refi with other lender once remodel is done.
In your example with 20% down, if your appraisal is higher than purchase price you can pull out difference right away with HELOC. Appraisal most likely won’t be much higher though.
Cash out refi can be done after 6mo but once again you would have to buy way under comps and possibly do an improvement to pull out enough to do rest of house.
