203(k) vs. hard money lender for BRRRR

[Joseph Belgrad]

Hello, really new to BiggerPockets so if this topic has been discussed already then my mistake. Why use a hard money lender over a 203(k) loan when purchasing a fixer-upper? If the hard money lender lends at 12% interest and the 203(k) lends at 5% interest, it seems to make more sense to use the 203(k) initially and then refinance into a conventional loan in the same manner as you would if using a hard money lender. The only downside I can see to this is that you would have to live on site until the refinance due to the requirements of the 203(k) loan.