Either way, there is always going to be some balance that the borrower needs to be able to cover as "skin in the game".

I've done various things based on how much "skin" is in the deal. 

It also means you actually do not have any skin in the game which a lender is going to look for.  

Either they tell you glowing things (which could be because the applicant is a great tenant, or a horrible tenant they want to get rid of), or they're scared of liability so they'll say nothing at all (q.v., Dawn's great story).

They told me I needed some skin in the game and wanted a $1200 deposit.

You need your skin in the game.

Same as judging some one because of the color of their skin, their religion etc.

I don't have any skin to put into the game at this point, and have no real collateral either.

They may want you to use some of your money (skin in the game).

As for a hard money lender, I talked to a couple and they want some "skin in the game" which I don't have or a 25% down payment which I also don't have now.