HomeStyle Mortgage Deferment

[Cosmo Iannopollo]

I'm looking to do a live-in flip and the Fannie Mae HomeStyle loan looks amazing to me. The catch for me at the moment is that I have six months left on my apartment lease. However, in reading the Fannie Mae materials, I came across this bit of information:

A payment reserve of up to six months PITI is permitted when the borrower must vacate the property during renovation. The amount can be financed in the loan amount if the value will support such financing. The reserve is allowed only for the period in which the property is uninhabitable due to the renovations.

Does this mean that during the time period the house is uninhabitable, you won't be asked to make a payment? I thought I read somewhere that this was the case, with the interest during this time period being tacked on going forward. Was I mistaken? My wife and I are looking at some real dogs, so not only would this allow us to skirt the lease issue, would help us expand our search as well.