Using Hard Money for Owner Occupied Rental

[Justin Tyler]

I am planning to use a combination strategy of BRRRR and house hack for my first deal and want to use hard money to purchase the property. I was told by a few hard money lenders at a local REIA meeting that it will be nearly impossible to find hard money lenders willing to finance a property that I plan to live in. They said something about not being able to foreclose on the property if for some reason I filed for bankruptcy due to being owner occupied.

I am hoping to some of you in the BP community can tell me if this is true or not? If this is true, is this only the case if I plan to live at the property before refinancing and paying back the hard money lender? I don't see why it is an issue for me to live at the property once I refinance. I appreciate any feedback, thanks in advance!