Deed Restrictions

[Blake Byrd]

I am going to submit an offer on my first personal flip property, I have done several with my current employer, but this one is my own money. 

I have a few questions regarding the re-sale of the property & better understanding deed restrictions. I will be using a Fannie Mae loan and putting 15-25% down, depending on what terms I agree upon with the lender. I am paying the renovation costs myself. The property is being sold as is & with the last deed transfer on 1/28/15.

After I renovate the property what are the restrictions on reselling? Do I have to wait 90 days? Are there restrictions on financing for the person that comes along to buy? 

I assume that because I am paying for the renovations myself, there is no restriction to how much I spend on the renovation? Will I have to prove what I spent to the buyers lender?

Finally, my lender is telling me that I cannot use a Fannie Mae loan under my LLC is that correct? He said I can deed it over after the purchase, but would loose my title policy rights by doing so. The lender is also telling me there is no pre-payment penalty with them... Are there other pre-payment penalties i am not seeing?

Any advice would be of great help! 

[Wayne Brooks]

There's no "deed restriction" with using Fannie, or any other financing. Any deed restriction would be from the seller, generally only if the Seller is Fannie Mae. No, you can't use conventional lending as an LLC. I assume you're not getting a loan as an "owner occupant" as you'd be committing loan fraud. If your end buyer is using FHA financing, they can't sign a purchasse contract within 90 days of your purchase settlement.