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Underwriting

Gross Rent

Total rental income before any expenses or vacancy adjustments.

Underwriters use the lower of actual lease rent or market rent from the appraiser's Rent Schedule (Form 1007 for SFR, 1025 for 2–4 unit).

Related

Terms

  • Market Rent
  • Vacancy Rate
  • DSCR (Debt Service Coverage Ratio)

More in Underwriting

  • Credit Score (FICO)— A 300–850 score used to price consumer and investor loans; investor programs typically wan…
  • Tri-Merge Credit Report— A single report combining Equifax, Experian, and TransUnion — the lender uses the middle s…
  • Reserves— Liquid post-close funds a lender requires you to keep in the bank, measured in months of P…
  • PITI— Principal + Interest + property Taxes + Insurance — the four components of a full monthly …
  • Market Rent— The rent a property would command if leased today, established by an appraiser using recen…
  • T-12 (Trailing Twelve Months)— The property's actual income and expenses over the last 12 months — the primary underwriti…

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