diff --git a/cmd/root.go b/cmd/root.go
index be4f98a5..052d6394 100644
--- a/cmd/root.go
+++ b/cmd/root.go
@@ -185,22 +185,38 @@ func init() {
 
 // initConfig reads in config file and ENV variables if set.
 func initConfig() {
+	// Luet support these priorities on read configuration file:
+	// - command line option (if available)
+	// - $PWD/.luet.yaml
+	// - $HOME/.luet.yaml
+	// - /etc/luet/luet.yaml
+	//
+	// Note: currently a single viper instance support only one config name.
 
-	dir, err := filepath.Abs(filepath.Dir(os.Args[0]))
-	if err != nil {
-		Error(err)
-		os.Exit(1)
-	}
 	viper.SetEnvPrefix(LuetEnvPrefix)
 	viper.SetConfigType("yaml")
-	viper.SetConfigName(".luet") // name of config file (without extension)
-	if cfgFile != "" {           // enable ability to specify config file via flag
+
+	if cfgFile != "" { // enable ability to specify config file via flag
 		viper.SetConfigFile(cfgFile)
 	} else {
-		viper.AddConfigPath(dir)
-		viper.AddConfigPath(".")
-		viper.AddConfigPath("$HOME")
-		viper.AddConfigPath("/etc/luet")
+		// Retrieve pwd directory
+		pwdDir, err := os.Getwd()
+		if err != nil {
+			Error(err)
+			os.Exit(1)
+		}
+		homeDir := helpers.GetHomeDir()
+
+		if helpers.Exists(filepath.Join(pwdDir, ".luet.yaml")) || (homeDir != "" && helpers.Exists(filepath.Join(homeDir, ".luet.yaml"))) {
+			viper.AddConfigPath(".")
+			if homeDir != "" {
+				viper.AddConfigPath(homeDir)
+			}
+			viper.SetConfigName(".luet")
+		} else {
+			viper.SetConfigName("luet")
+			viper.AddConfigPath("/etc/luet")
+		}
 	}
 
 	viper.AutomaticEnv() // read in environment variables that match
diff --git a/pkg/helpers/sys.go b/pkg/helpers/sys.go
index d46a73c7..314067e2 100644
--- a/pkg/helpers/sys.go
+++ b/pkg/helpers/sys.go
@@ -16,7 +16,9 @@
 package helpers
 
 import (
+	"os"
 	"os/exec"
+	"os/user"
 	"syscall"
 
 	"github.com/pkg/errors"
@@ -30,3 +32,17 @@ func Exec(cmd string, args []string, env []string) error {
 	}
 	return syscall.Exec(path, args, env)
 }
+
+func GetHomeDir() (ans string) {
+	// os/user doesn't work in from scratch environments
+	u, err := user.Current()
+	if err == nil {
+		ans = u.HomeDir
+	} else {
+		ans = ""
+	}
+	if os.Getenv("HOME") != "" {
+		ans = os.Getenv("HOME")
+	}
+	return ans
+}