@Nicole Starnes : Most (in my experience) private lenders are "asset-based" lenders, in that they typically focus on the ratio of the loan amount to the value of the collateral, more so than the credit rating of the borrower. In other words, they rely on the loan-to-value ratio (LTV). So for instance, if you apply for a $65K loan on a house that is worth $100K, then your LTV would be $65,000. Private lenders in my area typically want to see an LTV lower than 60% or 65%, but every area is different and even within an area they may differ widely.
Now, if you plan on buying and holding as a rental, that's a different story because after the rehab you're going to want to refinance with a traditional lender at a lower interest rate. Therefore your strategy for exiting the hard money loan will depend on your ability to qualify for a loan with the traditional lender, so in this case most (in my experience) hard money lenders will then take your credit rating and income into account.
P.S. I use the terms "hard money lender" and "private lender" synonymously.
