Even though hard money lenders focus on the collateral, many are taking a much harder look at the borrower since the real estate bubble burst. Borrowers who are weak financially can still get funded but the amount may less than could be obtained if their financial picture were better.
Net Worth
What is the borrower's net worth in relation to the value of the property and the loan amount requested? Is the borrower too highly leveraged (too much debt relative to the value of his assets)?
Liquidity
How much of the borrowers net worth is in cash or investments that could be readily converted to cash? What is the liquidity in relation to the requested loan amount?
Income
Does the borrower have sufficient income, either from the property or from external sources, to comfortably service the loan? What is the certainty of that income?
Credit History
What is the borrower's credit score? Any prior loan defaults? Prior bankruptcy? If the credit history isn't stellar, can the problems be explained to the lender's satisfaction?
Real Estate Investment Experience
How much real estate experience does the borrower have? Does the borrower understand how to deal with unanticipated bumps in the road?