Hard money non owner occupied question

[Nick Causa]

In researching some hard money lending options for the rehab of a multi-family im living in, I noticed many lenders do not lend to owner occupied borrowers. Theres probably a great answer as to why but what is the reason for that? We’ll be living in one unit while renovating the other then vice versa.

[Andrew Postell]

@Nick Causa as mentioned above it's too restrictive for a Hard Money lender to put a loan on a primary home....mainly meaning, they are not allowed to charge that high of an interest rate nor charge all of those fees on primary homes. You have PLENTY of other options though. A FHA 203K (which is a renovation loan) can absolutely be used on a primary 2-4 unit property. And that loan is going to crush any HML out there as far as rate and fees. Admittedly, a HML is easier to get (less paperwork for sure) but that FHA loan is a 30 year fixed so you won't even have to refinance it either. Hope this helps!