Hard money is asset based. That means its based on the deal being a good deal, so much so that if the investor faults then taking it back won't be a loss.
That’s what a hard money loan is, the fact that SOME hard money lenders have manipulated newbies into thinking otherwise to collectively attempt to redefine "hard money" doesn't mean you are actually changing anything. (an effort to allow these lenders to work with more properties that are not actually deals, with people not actually investors, and allowing them to still profit off of loans that would not qualify for hard money. Lenders knowing they have recourse to destroy peoples credit, and THAT is their security. Meaning the increase in failures for their "clients" but w/out an increase to risk to themself. Classy.)
Same way wholesalers try to manipulate "how its done" in many aspects, and justify it via any means possible. BUT.. Many “Big” hard money lenders act just like banks, oh they have a "Hard money loan" with non hard money qualifications alright, but that doesn’t make it what it actually is.