Waiting period to refinance with equity after a quit claim deed?

I would like to find out if you can help me to refinance a home that is in my dad's name. My husband and I have lived in this home since November 1, 2013.

We have already been approved by a lender, however, the lender has stated that we will not be able to take out equity on the home until our names have been on the deed for six months through my dad signing a Quit Claim Deed. They suggested my dad refinance with us on the deed now and in a year my husband and I can refinance the house in our names. My dad does not want to refinance with us as he wants to be clear of this property. We do not want to go through the conventional purchase process as a refinance will meet our needs better. My parents are both on board for us (my husband and I) to refinance the house now in our names only.

Do you know of a work around solution pertaining to this issue? We want to refinance now and get some equity out for improvements. The home appraised last March at $140,000 and the mortgage balance is $69,000. We would like to take out $20,000 to build an addition. Meaning, a total requested mortgage price of $89,000. My parents are selling the house to us for only what they owe their current lender.

I did some research and found that sometimes, a lender is able to do a refinance with equity without requiring a waiting period (six months) for the Quit Claim Deed.

Is that true?

I am reaching out to you for help based on the fact that my parents have not lived in the home for over a year, and my husband and I have been living in the house, paying their mortgage, property taxes, etc. for over a year.

Can I refinance the house and get equity out for home improvements?

My parents are both on board for us refinancing in our name.