pre-pay penalty for fixer-upper

Good day investors,
Are there anyone paying pre-pay penalty on there fixer-upper if they sell it before 6 months my mortgage guy tells me there is no other way to avoid the penalty other than to wait 6 months or get a hard money loan.

Most lenders have recently started imposing a pre-pay for 6 months on Inv. properties since they’re losing so much money on early payoffs. Don’t let it bother you too much…chances are that you’ll have difficulty closing the deal before 6 months anyway since there are “seasoning requirements” that prevent a buyer from obtaining financing to buy your property before that time anyway. They don’t want to lend on properties that are quick flips since those flips account for the highest rate of defaults in the country. The FHA came out with their “flip” warnings, and the rest followed.

Hello, If your looking to avoid pre-pay penalties, then go with a HML. But, you will pay higher rates than traditional.
Always use traditional first, if your unable to, use a HML as a last resort.