You will have essentially borrowed 20K at 0% interest.  

I was on a site today called LendingOne.com and they have a great Q&A section about borrowing hard money.

If they are placing you in a secondary market, or with some credit unions, the lender does not cover the brokers fee and it is typical for the broker to charge you from 1 to 2 points for their services.You are correct that 20% is the minimum downpayment for a conventional mortgage ... however, some lenders may require more depending on the property and the borrower.  

You may be able to just borrow the money as long as you have everything in writing stating what you pay them monthly and that including that, you still meet debt to income ratio requirements and can qualify for the loan. 

For simplicity sake, say I loan 10,000 to a borrower. 

General Borrower Eligibility RequirementsFannie Mae purchases or securitizes mortgages made to borrowers who are natural persons and have reached the age at which the mortgage note can be enforced in the jurisdiction where the property is located.

Loan terms are negotiable but the legal language is pretty standard.I am sure that an attorney will use the right form that is in compliance with the state law and to make sure that you have no issues if your borrower stops paying and you need to foreclose.

Does the borrower have to pay PMI on a USDA loan?

With 1,300 top line I can borrow money form a lender and still start making 6% CAP rate today like RIGHT NOW! 

The LTC was sub 60% for the deal I was doing.HML looks at the asset more closely than the borrower, as long as the borrower has the talent and knowledge to do the deal.Good Luck!