What is the point of hard money if you need a downpayment for it?

[Mason V.]

I have talked to three hard money lenders today and each wanted 20%-40% down for a rehab. I understand the idea of having skin in the game. But, If I am going to be putting that much down I might as well just get an FHA 203 loan when I qualify in eight months. The down payment, to my understanding, kind of defeats the whole purpose of using hard money to begin with. I am really running out of options. May have to break down and find a partner, really not something I want to do. Although, there's also REITs.