Flipping a Fannie Mae property

[Tom Klein]

I'm looking at a Fannie Mae property and my realtor told me this:

That house is a Fannie May product. You would have to occupy the property for a minimum of 1 year. Would only be able to sell for 125% of your purchase price, like we discussed earlier today. It would be financable if you wish to do so. You could also rent it as well under Fannie Mae.

Is this the guidelines for every Fannie Mae property, the 125% means if I buy for $45k, I could only sell for $56k. Sounds rediclous.

[Wayne Brooks]

The resale restriction is generally no resale for 30 days, no resale or mortgaging for more than 120% of your purchase price for 90 days, after that no restrictions. If you buy during the owner occupant only period, and represent you are going to occupy it, then you need to stay there a year. If you wait and buy after the owner occupant only period, then you don't have to live there.