And be sure you have the ability to fire them at will and settle up so if they aren't progressing how you would expect, you can move on without paying huge penalties or in some cases not having any way of being able to fire them at all (some of the builders' contracts are ridiculously in their favor). 

Prepayment penalties- usually 1-5 year terms.

Financing provided through this program is only available for properties located in Michigan or Florida.Available Product Type: SOFR 7/6 ARM, SOFR 10/6 ARMLoan Amount: $766,550 MaximumLTV: Purchase and No Cash Out Refinance - Maximum 99%Prepayment Penalty: NoneLoan Assumption: NoneEligible Properties: 1-unit dwellings, attached and detached condominiums, PUDsEscrow: An escrow account must be established for property taxes, and flood insurance, if requiredUnderwritingNo Private Mortgage InsuranceOccupancy – Primary residencesMinimum Credit Score - 700DTI – Max 43% (UW/Mgmt exceptions up to 50% with minimum 3 documented compensating factors)Student Loans – If in deferment, no qualifying payment requiredDown payment of 1% must be borrower’s own funds, while closing costs and prepaids may be gift fundsAttached condominiums require a 10% down paymentEligible Borrowers – Protect and serve heroes are defined as employees of public or private education institutions, employees of medical and healthcare organizations, all first responders, and active or former military personnel.Servicing: Retained

If you are looking to fix and flip, just make sure you look for a 12 month term, non-dutch interest on the rehab funds (this means you do not pay interest on the rehab money until you use it), no prepayment penalty, and avoid any lenders that escrow your payments at closing.

Prepayment penalties- usually 1-5 year terms.

Check with the plan administrator and use that verbiage.  2.  59.5 is when you can take distributions without penalty.  

It might help you avoid penalties if the IRS goes after you later.You can claim the labor expenses even without 1099s, but you will technically be in non-compliance.

And in that case, you would still need to sue but then you can only sue for the unpaid balance of the agreement and you will have to attempt to locate the debtor.I would make sure you have a clause in the contract that states that if they don't make the repayments as per the agreement, that attorney's fees, late fees, interest and some other penalties are payable.

Investment mortgages, like DSCR loans for investment properties, typically come with prepayment penalties (PPP) to protect against prepayment risk and the keep portfolio CPR in line.

This can be extremely costly.We have a two step program has no waiting period at all and will end up being quite a bit cheaper then the 3 month waiting period on closing costs, rate and NO pre-payment penalty.