They paid over 77% of the market value of the collateral.

That way you can cross collateralize your investments.  

He is willing to get creative with other forms of collateral. 

Collateral is your investment, so a lot of banks or bank-like asset managers do not really want to own the physical risk.

We reside in PA. and my husband and I wanted to know if we could use 1 of our homes as collateral for a hard money loan. 

I've never seen that term used in cases where loans between related parties were under dispute.I would be more interested in demonstrating the interest was reasonable based market research, there is evidence of repayment, evidence of any collateral, consistent treatment as a loan on both tax forms, inclusion of interest income for him and interest deductions for you, there were provisions for enforcement of collection on nonpayment, amortization schedule, etc.Remember, it is canon that substance takes precedence to form.

I did put a lien on someones vehicles before while lending them money and using it as collateral, not too difficult but had to have there permission. 

The good thing about FCI is that I have the ability to review the collateral files and have the seller answer my questions during the due diligence period using the online chat tools when the indicative offer is accepted and we move to the subsequent steps in the FCI portal online.

All the best   You can though with private money or using collateral. 

Andy, I'm certainly not an expert, but from what I have been told Brie is correct, you'd be hard pressed to find a lender willing to do this, and you do have to disclose this type of seller financing to the bank even if you have the cash in your account already and are just going to put the seller financed money back in your account to replace the down payment.Having said that you might be better off getting a second lender like a private investor to cover the 20% however you couldn't use the property as collateral for a second lien unless the first lender is ok with it, or pull equity from another source if possible.Do you have any other properties to pull equity from, or is this a fix and flip that you could build equity into?