Fannie Mae- 90 Day Rule
I made an offer on a Fannie Mae property via Homepath earlier this week and I heard back on Friday that my offer was accepted for $101,500. I am borrowing around $150,000 from a relative's IRA to fix and flip it. They added this clause to the contract:
Grantee herein shall be prohibited from conveying captioned property for a sales price of greater than $121,800 for a period of 3 months from the date of the recording of this deed. Grantee shall also be prohibited from encumbering subject property with a security interest in the principal amount of greater than $121,800 for a period of 3 months from the date of the recording of this deed. These restrictions shall run with the land and are not personal to grantee. This restriction shall terminate immediately upon conveyance at any foreclosure sale related to a mortgage or deed of trust.
Now I know if I was going to sell to a FHA buyer I would have to wait 90 days anyway, but not being able to place a mortgage on the property for over $121,800 baffled me. I won't hear back until Monday, but I was wondering if anyone else has dealt with this or has any suggestions/recommendations.