These loans offer lower than interest rates but have pre-payment penalties if loan is paid off or refinanced before the loan term ends.  

My leases state there is a 60 day notification period as well as a 2 month penalty for breaking the lease early. 

A few other notes - this is a higher risk loan for a lender compared to a traditional loan, so you may find that they have higher down payment requirements, higher rates and/or prepayment penalties.

There are also often prepayment penalties as they don't want to write a loan just to have you pay it off in the first 0-3 years.  

The way he managed the reservations was to reach out to each guest and ask them to cancel at zero penalty to themselves (as guest) and re-book under the new owners profile with a 10% discount.  

Next tier lending: If you need to refinance after those, the DSCR mortgages often have 3 year or 5 year prepayment penalties. 

And any pre-payment penalties will burn off before year 5 in any event.

But at least there’s ZERO penalty when “the experts” are wrong.

Well the lease says he needs to be added to the lease and approved as an occupant, unfortunately for him that is likely not going to happen and she will have to decide to break the lease and pay the penalty, violate the lease and risk eviction or wait it out. 

The penalties are too stiff to "ignore and hope you never get caught."