Hard Money Lender Questions

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Hi.

I'm working on my first official rehab project, therefore, I have not  established private money lenders at this point.  I have purchased the property with my own money and am talking with a hard money lender to finance the rehab portion and some holding costs for the project.  They will lend me the full purchase price of the property at 16% interest only.

Is it normal for a hard money lender to be the Mortgagee/Loss Payee on a homeowner's insurance  policy?

Also, once the property becomes livable, I plan to live in it until it sells - with the assumption that the market I am in, plus winter months, will take a few months to sell (unless I get lucky and it  sells rapidly).  Is this typically a problem with a hard money lender who will have the first position lien on the property?

Thank you,

Bryan