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Underwriting

Market Rent

The rent a property would command if leased today, established by an appraiser using recent local comparables.

Reported on the 1007 (single-family) or 1025 (2–4 unit). Used to size DSCR loans on vacant or under-market properties.

Related

Terms

  • Gross Rent
  • DSCR (Debt Service Coverage Ratio)
  • Appraisal

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 …
  • Gross Rent— Total rental income before any expenses or vacancy adjustments.
  • T-12 (Trailing Twelve Months)— The property's actual income and expenses over the last 12 months — the primary underwriti…

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