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I am afraid that the mortgage agreement statement you typed above is not a deed restriction, it is a lender notification clause, because it does not restrict or prevent you from selling the property for any period of time.
I am sorry to say that in this and many other programs the reason for the deed restriction is to stop people from upgrading their property and then turning around an selling it immediately to realize a profit. There have been many unscrupulous contractors who have used and abused low income families by getting a low income family into a home on the deed and using these federal programs and then paying the low income couple several thousand dollars more to buy the house back from them and the developer will resell the house for tens of thousands more with the free upgrades installed.
Thus, the laws do not prevent these groups from having such requirements in their programs for deed restriction requirements to participate in these programs.
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