It is a very legal issue that has been discussed at length here on BP.  

Anticipated Rehab $125,000.Here are the specific numbers on this house:Purchase $149,900Estimated Purchase Closing Cost: $6,000Rehab cost: $125,000Selling Closing cost: $6,000Selling Commission (6%) $25,494TOTAL COST $312,394Sell for $424,900 - $312,394 = $112,506 = 36% Estimated length of time to close on sale 8 - 12 months. 

This is an easy way to combine the impact of the interest rate and the length of loan. 

The lengths some of these guy will go to rip you off is amazing.I finally did land one and am extremely happy with him.

We have found the following applies to CA, TX, VA, and SC.As long as you lived in there the required length (ie personal property 1 year unless for a good reason, children, work move, etc) the interest rate does not change and you do not have to report it to the bank.

The length will not always be what you ask for; the one I just closed had a 5 day inspection period.To back out based on the inspection, the inspection report from a certified inspector must be provided.

Don't apologize for the length of your post....it is interesting!

The length of time you stay is a grey area.

Are the two contracts the same length? 

Implicit in that definition is an arms length transaction where both the buyer and seller are not motivated by anything but their own self interest.