if a construction corp applies a commerical loan to buy a existing house. LTV 50%.
however, the company will bring the house, built a new house and sell it with two years. Will bank be able to process that????

lets said the company wants a 3/1 ARM. however, after they sold the house, they will pay back the loan back to the bank after 2 years. will there be penalty for paying back the loan early? will it be possible that there is no penalty for any bank????

It depends on the bank. Some banks have no prepaymant penalty, others do. You will need to call local banks explain what yu are doing and see who isinterested.