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Will a hard money lender finance a home you live in?
Not the eight national investor lenders below. Six say they lend only on non-owner-occupied property, and two more say so for their rental (DSCR) loans. The others we checked do not say, apart from Griffin Funding (see below).
| Lender | What its website says |
|---|---|
| Lima One Capital | Does not finance owner-occupied properties; a business-purpose lender. |
| Ternus | Never lends to owner-occupants or individuals. |
| Easy Street Capital | Rental loans are strictly business-purpose; occupying the property is strictly prohibited (its rental page). |
| LendingOne | Only non-owner-occupied investment properties, not primary residences. |
| CoreVest | Does not cover owner-occupied residences. |
| Kiavi | Fix-and-flip and rental (DSCR) loans are for non-owner-occupied properties. |
| RCN Capital | Describes itself as a lender for non-owner-occupied properties. |
| Express Capital Financing | DSCR loans are for investment properties, not owner-occupied homes (its DSCR page). |
From each lender's own website, read October 29, 2026. "Not stated" means the pages we read do not say. Terms change; confirm with the lender. Not financial advice.
Griffin Funding is different: it is a licensed mortgage lender that also makes consumer home loans, although its DSCR loans are for rentals only. If you will live in the property, that is the kind of lender you need.
Why investor lenders avoid owner-occupied loans
A loan to you personally for a home you live in is generally consumer credit under federal lending rules, with protections that business loans do not carry.
Business-purpose loans are exempt from Regulation Z
Under 12 CFR 1026.3(a), credit "primarily for a business, commercial or agricultural purpose" and credit to anyone other than a natural person (such as an LLC) are exempt from Regulation Z, the Truth in Lending rules. The official interpretation (comment 3(a)-4) treats a loan to buy, improve or maintain a rental that is not owner-occupied as business purpose, but "if the owner expects to occupy the property for more than 14 days during the coming year, the property cannot be considered non-owner-occupied."
Consumer loans bring ability-to-repay and high-cost rules
- Ability to repay. For consumer loans secured by a dwelling, 12 CFR 1026.43(c) requires a "reasonable and good faith determination" that you can repay. Many hard money lenders size loans on the property rather than on your income. Temporary or bridge loans of 12 months or less are exempt from that requirement (12 CFR 1026.43(a)).
- High-cost mortgage limits (HOEPA). A consumer loan on your principal dwelling is a high-cost mortgage under 12 CFR 1026.32 if its APR is more than 6.5 percentage points over the average prime offer rate on a first lien (8.5 on a subordinate lien), or its points and fees exceed 5% of the total loan amount (for 2026, on loans of $27,592 or more; smaller loans use the lesser of 8% or $1,380), or a prepayment penalty can apply more than 36 months after closing or exceed 2% of the amount prepaid. Loans to finance the initial construction of a dwelling are exempt (12 CFR 1026.32(a)(2)(ii)).
- Licensed loan originators. Under the SAFE Act rules, a consumer home loan is a "residential mortgage loan" (12 CFR 1008.23), and states must generally require an individual who, in a commercial context and habitually or repeatedly, takes a residential mortgage loan application and offers or negotiates its terms to register with NMLS and hold a state loan originator license (12 CFR 1008.103(a)), with exceptions listed in the rule.
When a loan on a property you live in can be business purpose
The official interpretation (comment 3(a)-5) covers rental property that is or will be owner-occupied within the coming year:
- A loan to buy it is deemed business purpose if the building has more than 2 units.
- A loan to improve or maintain it is deemed business purpose if it has more than 4 units.
So a loan to buy a duplex you will live in does not get this automatic business-purpose treatment, while a loan to buy a triplex or fourplex you will live in and rent out is deemed business purpose under this comment. Lenders still set their own policies, and the lenders above exclude owner-occupied property on the loans they describe.
Options if you will live in the property
- A licensed mortgage lender. Ask for the loan originator's NMLS identifier; a lender making consumer home loans should have one.
- A renovation or construction loan from a bank or licensed mortgage lender.
- Buy as an investment first. If the property will be a rental, investor lenders apply. Be accurate about occupancy with any lender.
Related guides
Buying before you sell your home? See what a bridge loan is and how the federal 12-month rule treats it.
Frequently asked questions
Can you get a hard money loan for a primary residence?
Rarely from investor lenders. Lima One, Ternus, Easy Street Capital, LendingOne, CoreVest, Kiavi, RCN Capital and Express Capital Financing say their investor loans are for non-owner-occupied property. A loan to you personally for your own home is generally consumer credit, with ability-to-repay, high-cost mortgage and loan originator licensing rules.
Why don't hard money lenders do owner-occupied loans?
Business-purpose loans are exempt from Regulation Z (12 CFR 1026.3(a)). A loan to you personally for a home you live in is generally consumer credit, which brings the ability-to-repay rule, high-cost mortgage (HOEPA) limits and SAFE Act licensing.
How long can you live in a property with an investor loan?
Under the official interpretation of Regulation Z, a rental is not non-owner-occupied if the owner expects to live there more than 14 days during the coming year. Lenders' own occupancy terms can be stricter.
Can I use a hard money loan on a multifamily property I live in?
Possibly. Regulation Z's official interpretation treats a loan to buy an owner-occupied rental with more than 2 units, or to improve one with more than 4 units, as business purpose. Many investor lenders still exclude any owner-occupied property.