PLEASE HELP!

I have a borrower with a middle score of 670, reasonable assets and stable employment. He would like to refinance his home and get some cash back. The LTV we are looking at is around 30%!. Two issues: 1) when he bought the home, it had an extra room built w/out permits, and 2) the existing loan on the home (which does not appear on his credit) is a private loan he's had for over year and has made payments in cash. the banks i've been dealing with are either asking for 12months cancelled checks as proof that he's made his payments (even though i was able to obtain a VOM), while others are asking for permits on the unpermitted extra room. does anybody know of a lender that is willing to lend to this borrower???

THANK YOU!