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Maurice Nix
  • Virginia Beach, VA
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Investment Conventional loan penalty?

Maurice Nix
  • Virginia Beach, VA
Posted Mar 30 2018, 17:57

Hi BP, 

I am in the process of bidding on a HUD home and applied for an investment conventional loan pre-approval. After receiving the pre-approval I was informed that I can't flip the property and I would have to hold it for a year. What are the penalties if I sold the property early? I'm also looking into other financing options including hard money. This is only my second flip and I will admit I am afraid of hard money loans because I don't fully understand them. I've also considered a personal loan to cover the entire project from purchase to renovations but I'm still not sold on that due to the risks involved. Any support would be greatly appreciated.

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