Anyone have specifics on rules for a 'conventional' mortgage vs construction?

We have a construction loan for a house purchased in May. It had no kitchen (had been gutted), one gutted bathroom and mostly subfloors. The house didn't qualify for conventional - which was obvious. But the work is going slowly and we want to quickly/cheaply do what it takes to qualify for conventional.... show more We have a construction loan for a house purchased in May. It had no kitchen (had been gutted), one gutted bathroom and mostly subfloors. The house didn't qualify for conventional - which was obvious. But the work is going slowly and we want to quickly/cheaply do what it takes to qualify for conventional. Then complete the work. We have enough from the previous house to pay for the work.

The only info I get from the 2 mortgage companies I've contacted is "no construction" it has to be "100% complete" and "all work must be done" and "no plywood or studs showing". The people I get access to (for quesitons) obviously don't know.

Any idea where to get more specifics?
We are going to end up spending money for stuff we'll then rip out, so have to waste a few thousand - but dont want to do that and then not even have it qualify!!
Such things as:
1) If we install very cheap rugs, able to be ripped out easily ... not those rows of nails on the edges. Will this be ok? Maybe some adhesive, so there might be ugle edges.
2) Do the kitchen cabinets need to look permanent? We can borrow some from a guy who just had his kitchen redone and has the old ones. We can put them in the kitchen with some cheap laminate on top for counter. We have appliances. Sink is installed in 2x4s & plywood - will change that to a regular sink cabinet.
3) The laundry and bath have some old vinyl floor partially ripped up. Can we just glue that down? If there are little places where plywood shows, is that ok?
4) One room we dont want to sheetrock the cieling (upstairs is the masterbath with plumbing to be changed. What is a cheap way to do a temporary ceiling?

It will look obvious that we are going to do it BETTER, but it will still be an inhabitable house.

NOTE: Rules have changed in the past year! Please dont tell me things based on what worked a year or more ago. People have told me you can paint the plywood floors, you can't. That you can staple plastic to the ceilings ... you cant.

Sorry this is long and rambling. Thanks for any advice.
Update: This doesn't have to do with our credit or needing money for the renovations. We have good credit and enough money after the downpayment to do renovations. The problem is strict rules for conventional loans. With the house valued in its current state (as it was for the construction loan) we can put 50% down... show more This doesn't have to do with our credit or needing money for the renovations. We have good credit and enough money after the downpayment to do renovations.
The problem is strict rules for conventional loans. With the house valued in its current state (as it was for the construction loan) we can put 50% down on it - rules still won't let them do that for a conventional loan.
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