Obviously you do not want to go there.Inconsiderate indivulaes intent on violating rules must be punished (fined) otherwise they have no reason to conform.

After a year or 2, you do what is called a streamline after your rehab or just plain appreciation gets you in a conforming loan.

Who was to verify the repairs conformed to the repair addendum and or to national/state/local building codes?

What you chose to do with it after the fact is not up to the lender (ask, though, in-case there is some acceleration clause i'm unaware of). once the loan has closed and the property is owned, you can move title to an entity. there would be additional costs/ fees, but you'll be hard-pressed to find a conforming lender to close in the LLC. 

Don't even mess with conforming lenders, it's a waste of time. if you have permitting in-hand and already own the property, you could probably get a 12 month loan with no prepayment penalties to finish your project. rates may be high, something like 8%-10% or so, but it would give you the liquidity to finish, and you could pay it off with the proceeds from the sale of the flip.ask about cross-collateralizing that flip, too. may give the lender more peace of mind when you're out of cash and need to borrow. 

They still may cut it down to 75% (fairly typical) or pin it up against market rents, still; but at least you'll be able to use that income to qualify for your next purchase with a conforming lender and swoop those shiny low interest rates and payments. 

The property appears to be a 3-family and is an all brick, late 1800's construction.I was wondering - upon completing this transaction, will the city require me to conform to the current zoning requirements for 3-family properties?

Purchase price: $51,500 Cash invested: $31,000 Sale price: $118,900 Turned a listed 2-1 with unfinished non-conforming basement into a 4-2 with a finished basement.

or other statements made by their agent ---- if the property is for sale (houses, commercial, land, lots or non-conforming) there is a degree of motivation.

So, your bonus entitlement under your VA home loan benefit increases every time the GSE's (Fannie Mae/Freddie Mac) increase the conforming loan limit, which is typically done annually.