Do All HM Lenders Require You To Own Your Primary Residence?

Question

Okay so I came across this amazing deal but the seller is requiring All-Cash Offers (as if I haven't heard that before). The deal requires at least $200K to close plus $100K to rehab but will command rents upwards of $4200/month with non-renovated comps selling at $350K. Great right (lol)? With a deal this good, I finally decided to look into Hard Money Loans as a potential source of Financing and the lender told me that one of the requirements is that the borrower (or a partner of theirs) must own their Primary Residence. This is my first investment property and I've always been a renter.

Is this a common theme that I am going to run into with all HMLs? What options (if any) do I have to get around a requirement like this?

Thanks in advance for any insight y'all may have.

Is this a common theme that I am going to run into with all HMLs? What options (if any) do I have to get around a requirement like this?

Thanks in advance for any insight y'all may have.

Robert Saunders · Answer

Thank you everyone for your quick responses to my question. I can clearly see now that this is not an industry norm. Moving forward I know that I can talk to a few HMLs so that I find one that fits my investment needs. I really appreciate it everyone.

Mike Burkett · Answer

@Robert Saunders  I have never required anyone to own a primary residence.

David Weintraub · Answer

Never heard of a lender requiring this.

Jay Hinrichs · Answer

this lenders SOP may be to cross collateralize your personal residence.. especially if your a rookie..

Robert Saunders · Answer

Thanks @Sam Barrow and @Ann Rosen for your response. Sounds like I definitely need to look into other HMLs. The first one I reached out to is promoted by BP so I thought it might have been one of the best out there. I will check out your recommendation Sam; thanks. Ann, do you have a Hard Money Lender that you would recommend? Thanks again.

Ann Rosen · Answer

All hard money lenders do NOT require you to own your own residence.  Many of them are fine with you renting.

Sam B. · Answer

I don't like hard money, never used it, but I have talked to quite a few HMLs and I've never heard that.

Try some others. Lima One has some of the better rates I've seen.