Hi Barbara,If the question is about a note, borrower strength matters a lot more. 

I’m refining my due-diligence criteria and realized everyone weighs borrower traits differently.Some prioritize credit score, others payment history, employment stability, or equity position.Curious what traits matter most to you when evaluating a borrower behind a note.

Definitely requiring more skin in the game, doing a lot more diligence on the appraisals, reducing maximum loan sizes as well as reduced amounts given to one borrower in a set period of time. 

“Feels like more investors value certainty and speed over headline rates lately.”This has always been true for knowledgeable borrowers.

For example what is more of a lending risk: a borrower who has 10 fifty % LTV mortgages for $100,000 each or a borrower who has 3 ninety % LTV mortgages for $1,000,000 each ?   

If you're looking at a Performing Loan, then Ability (part of borrower profile) would be key.

@Sean SabinOn the BRRRR projects I do, I borrow the purchase and rehab money.

Pennsylvania Purchase Price $450,000 on 4 unitRate 6.249. 30 year fixed- 5 year PPPMortage Broker Fee.  12,323.00Underwriting fee 1795.00Document prep fee 195.00appraisal fee 805.00credit report 200.00entity review fee 495.00appraisal review fee 250.00title closing protection letter 125.00endorsement fee 100.00endorsement fee 100.00endorment fee 100.00title settlement agent fee 255.00lenders title insurance 3157.00tax status research fee 30.00recording fee for deed 93.00recording mortgage fee 142.75tax city county stamp deed 2250.00tax state stamp deed 2250.00prepaid interest 1,047.00property taxes 1,334.00Title owners title insurance 565.30ESTIMATED REQUIRED FUNDS OR CASHBACKSales contract price 450,000borrower closing costs 32,022.00Total due from borrowers- 482,022.00Loan Amount 360,000Seller credits 4,500.00other credits 9,000total credits (seller and others) 13,500Total due from borrower 482,022.00Less total mortgage loans and total credits 373,500.00First mortgage P and I- 2216.35Homeowners Insurance 200.00Property taxes 667.00Total monthly payment 3083.35

Just make sure you don't over leverage by borrowing so much your cash flow is tight or even negative.

A lot of borrowers that are self employed have solid personal or business cash flow, but DSCR just doesn’t work because of conservative rent calculations, higher insurance costs, or interest rate pressure.With a bank statement program, qualification is based on 12 or 24 months of business or personal bank statements rather than strictly using property cash flow.