Private money and hard money are usually associated with investors, but many homeowners ask whether they can use them on the house they live in. The short answer is that it can sometimes be done, but it is much more limited than on an investment property, because a loan secured by your own home is generally a consumer loan with its own federal and Florida rules.
This guide explains why most hard money lenders avoid owner-occupied homes, the limited situations where short-term private financing does appear, what to ask before signing, and the loan types Florida homeowners often compare first. Mortgages Done Right Inc. brokers loans from more than 25 wholesale lenders, so the goal is to match the loan to the situation instead of forcing a short-term loan onto a long-term need.
Not Sure Which Loan Fits the Home You Live In?
Greg Hayden can review your property, equity, income and timeline, tell you whether a private-money, bridge or other option is realistic, and compare it with traditional and non-QM loans from more than 25 wholesale lenders.
The Short Answer
Most private and hard money lenders focus on business-purpose and investment-property loans. When the property is your primary residence, the loan is typically treated as consumer credit, and the lender has to follow rules that differ from how asset-based lenders typically underwrite. Some licensed lenders do offer short-term, non-QM or bridge-style financing on owner-occupied homes, but availability, pricing and underwriting vary by lender and by scenario.
Why Most Hard Money Lenders Avoid the Home You Live In
Hard money is built for speed and flexibility. It is typically approved based on the property, the equity and the exit plan. Consumer mortgage rules point the other direction: for most consumer mortgages, they require the lender to look at the borrower’s ability to repay. The main rules are summarized below.
| Rule | What it means for a loan on your own home |
|---|---|
| Business-purpose exemption (Regulation Z, 1026.3) | Credit extended primarily for a business, commercial or agricultural purpose is exempt from Regulation Z. A loan to buy or refinance the home you live in is generally a consumer-purpose loan, so the exemption usually does not fit. |
| Ability-to-repay (1026.43) | For most closed-end consumer mortgages secured by a dwelling, the lender must make a reasonable, good-faith determination that you can repay the loan. Certain transactions, including qualifying temporary bridge loans, are exempt from this particular rule. |
| Bridge-loan exception (1026.43(a)(3) and its commentary) | A temporary or “bridge” loan with a term of 12 months or less is exempt from the ability-to-repay and qualified-mortgage provisions. Other consumer-lending rules can still apply. |
| High-cost mortgage limits (1026.32) | Loans priced above set APR or points-and-fees triggers are treated as high-cost mortgages and carry extra restrictions. |
| Florida licensing (Fla. Stat. 494.0025) | It is unlawful to act as a mortgage lender, mortgage broker or loan originator in Florida without a current, active license. |
| Florida interest and usury limits (Fla. Stat. 687.02) | Florida has statutory interest and usury limits. How they apply can depend on the loan amount, the type of lender, the fees and the structure of the transaction. |
Business purpose is about the primary purpose of the loan
Whether a loan is business-purpose depends on what the money is primarily used for, not on what the lender calls it. According to the CFPB’s official commentary on Regulation Z, credit used to acquire, improve or maintain rental property you do not live in is deemed business-purpose, and for an owner-occupied rental property an acquisition is deemed business-purpose only when the property has more than two housing units. A loan to expand a business can also be business-purpose even when the borrower’s home secures it. But a loan to buy, refinance or pay off debts on the home you live in is generally a personal loan, and the stated purpose needs to be real and documented.
What ability-to-repay means in practice
For most closed-end consumer mortgages secured by a dwelling, Regulation Z requires the lender to consider several factors, including your current or expected income or assets other than the value of the home, your employment status, the monthly payment on the loan and on any simultaneous loan, your mortgage-related obligations, your other debts, alimony and child support, your debt-to-income ratio or residual income, and your credit history. In plain terms, a lender generally cannot approve a loan covered by this rule on your home based on equity alone. If the reason you are looking at hard money is that your income is difficult to document, a licensed non-QM option may fit better, because those lenders are built to document ability to repay in different ways.
When Short-Term Private Money Can Make Sense on Your Own Home
There are a few situations where short-term financing on an owner-occupied property appears, and where the 12-month bridge-loan exception in Regulation Z can matter:
- Buying before you sell. The CFPB’s commentary gives financing a new dwelling when the consumer plans to sell the current dwelling within 12 months as an example of a temporary or bridge loan. A short-term loan can cover the gap, but you carry the cost of two properties if the sale takes longer than planned.
- A home that does not yet qualify for standard financing. A property that needs repairs or is in a condition a conventional lender will not accept may be financed short-term and then refinanced into a long-term loan once the work is complete. Lender appetite for this on a primary residence varies.
- A tight closing timeline. Some lenders can close faster than a traditional bank, but speed can come with higher rates, points and fees.
In each case the exit plan is the foundation of the loan. Before you sign, know exactly how the loan will be repaid: the sale of the current home, a refinance into a long-term mortgage, or another source. A short-term loan on the home you live in puts that home at risk if the exit falls through, so a realistic plan and a backup plan matter more than the rate.
What the Cost Can Look Like
Short-term and non-traditional loans commonly cost more than standard mortgages. Ask for the full list: the interest rate, origination points, other lender fees, extension fees if you need more time, prepayment terms, and title, appraisal and legal costs. Compare the cost of the entire term, not just the monthly payment.
The federal high-cost mortgage rules give you a useful yardstick. Under Regulation Z, a first-lien loan is a high-cost mortgage if its APR exceeds the average prime offer rate by more than 6.5 percentage points (8.5 points for a subordinate lien), if total points and fees exceed 5% of the total loan amount on loans of $27,592 or more (the 2026 figure, which is adjusted each year), or if it allows certain prepayment penalties. If a quote on your own home is near or above those triggers, ask the lender whether the loan is classified as high-cost and what additional protections apply.
Florida Rules to Keep in Mind
- Licensing. Florida law makes it unlawful to act as a mortgage lender, mortgage broker or loan originator without a current, active license. Confirm that the company and the individual you are dealing with are licensed through the NMLS Consumer Access website.
- Interest and usury limits. Florida has statutory interest and usury limits, found in Chapter 687 of the Florida Statutes. For example, section 687.02 refers to an 18% simple-interest figure as part of Florida’s general usury framework, but that number is not a universal ceiling or a quote limit for every transaction. The rules can vary based on the loan amount, the type of lender, the fees and how the transaction is structured, so ask the lender how the quoted loan fits within them.
- Homestead and your spouse. Florida homestead property has special documentation requirements. Florida Statute 689.111 states that nothing in that section dispenses with the requirement that husband and wife join in a conveyance or mortgage of homestead realty, although the joinder may be accomplished through a power of attorney. In practice, a lender and title company may ask a married owner’s spouse to sign even if the spouse is not on the loan. Ask your title company or attorney how this applies to your property.
Better-Fitting Options Many Florida Homeowners Compare First
Many people who start out searching for hard money on their own home find that a different loan solves the actual problem at a lower cost. Here are common starting points:
| If your situation is… | Compare these first |
|---|---|
| Self-employed, with income that is hard to show on tax returns | Bank statement loans, which qualify you on deposits, still with a documented ability to repay. |
| Substantial savings or investments but limited income | Asset depletion or asset qualifier loans. |
| A loan amount above conforming limits | Jumbo financing for Florida primary residences. |
| Need cash from the equity in your current home | A HELOC or a cash-out refinance, and our guide to home equity loans vs. HELOCs. |
| Credit, income documentation or property type that does not fit standard guidelines | Non-QM loans from licensed lenders. Terms vary by lender. |
| Buying a new home before your current home sells | A bridge loan of 12 months or less, or a loan that uses equity in your current home. Compare the cost of carrying two properties. |
| The property is an investment or business-purpose deal, not the home you live in | Our guide to private money and hard money loans in Florida. |
Questions to Ask Before You Sign
- Is this a consumer-purpose or a business-purpose loan, and how was that decided?
- Is the company licensed in Florida, and is the loan originator licensed?
- What are the interest rate, points, fees, extension fees and prepayment terms, and what is the APR?
- How does the lender document my ability to repay?
- Is this loan classified as a high-cost mortgage?
- What happens if my home does not sell or I cannot refinance by the due date?
- Does my spouse need to sign?
Frequently Asked Questions About Hard Money and Private Money on a Florida Home
Can I get a hard money loan on my primary residence in Florida?
It can be possible in limited situations, but many hard money lenders do not lend on owner-occupied homes. A loan on the home you live in is generally a consumer loan, and the lender must follow consumer-lending rules, including, for most closed-end mortgages, the ability-to-repay rule unless an exception such as the 12-month bridge-loan exception applies. Availability and terms vary by lender.
Is private money different from hard money?
The terms are often used interchangeably. Both generally describe short-term, asset-focused loans from private lenders or funds instead of banks. For a home you live in, the question that matters most is not the label but whether the loan is a consumer-purpose loan and how the lender qualifies you.
Can I use hard money to avoid documenting my income?
Generally not on a consumer mortgage secured by the home you live in. For most closed-end consumer mortgages, the ability-to-repay rule requires the lender to consider your income or assets other than the value of the home, among other factors. If your income is difficult to document, ask about bank statement or asset-based options that still verify your ability to repay.
What if I need to buy my next home before my current one sells?
A bridge loan of 12 months or less is one option, and the CFPB gives this situation as an example of a bridge loan in its commentary. Another approach is to use the equity in your current home, such as through a HELOC or a cash-out refinance. The right choice depends on your timeline, your equity and the cost of carrying both properties.
Does Mortgages Done Right arrange hard money on owner-occupied homes?
Mortgages Done Right primarily arranges private and hard-money financing for investment and business-purpose transactions. Owner-occupied scenarios are reviewed individually to determine whether a compliant consumer mortgage or another loan program is the better fit.
Talk Through Your Options With Greg Hayden
Bring the property, the amount you need, your timeline and how you plan to repay. A quick review up front can show whether short-term financing makes sense or whether another loan fits better.
Rules were checked against the CFPB’s Regulation Z and the Florida Statutes in October 2026 and can change. This article is general education, not legal advice, a rate quote, loan approval or commitment to lend. Loan availability, pricing, underwriting and eligibility vary by lender and scenario. Mortgages Done Right Inc. NMLS #1532755. Greg Hayden NMLS #332209.
