I had a low qualifying amount of money I could borrow ($3k) so I didn't precede, maybe you have agreed to conditions I never saw. 

I could be wrong but the way it was explained is that i would have the “note” to the Property or would be able to foreclose if the borrower didn’t not pay back.

lender servicer maintains their yield they paid for.. borrower keeps home.. and things stay stabilized.. ?

That can be key for those borrowers who are tied up with their 9-5 (especially if you can't have your cell phone at your desk, if you know what I mean...). 

I’ve been reaching out to some hard money lenders, however with the current state of our world their borrowing prerequisites have gotten tighter - need to be within driving distance/need to own at least 2-3 properties, etc.Has anyone heard of any hard money lenders who don’t have these requirements right now?

@Chadeesia DunkleyAs an alternate you could borrow from your 401K up to 50% not to exceed 50K.  

In addition, buyers will no longer be able to borrow the down payment from 'non-traditional sources.'

Transfer of the property of Beneficial Interest in Borrower.

Talk to a loan officer and find out your options and how much you can borrow. 

Co-owners who live at the property and are co-borrowers would apply for FHA together.