Private money lender

[Michelle Hurgus]

Do private money lenders and hard money lenders fund owner occupied properties ?

[Andrew Postell]

@Michelle Hurgus you've got some good responses above but I wanted to reiterate a couple of points here.   I think you were referring to "purchasing" a primary home but if its different then let us know.  The reason why we cannot put a hard money loan on a primary residence is because your primary home is NOT for a business purpose...it's for a personal purpose. Your personal residence. Once you declare a property as your primary home then all sorts of federal compliance laws come into play...and most of those are centered around NOT exploiting the person occupying their primary residence....aka, no high fees. So a lender that charges 3 points at 12% interest will violate all types of compliance laws. That's why HML's cannot lend on your primary home. But the benefit is that you will have LOTS of other loans, that are BETTER than HML's, to receive on your home. That is, if you can qualify for them. I hope this makes sense how I am describing it.