DSCR Appraisal & Rent Schedule
For DSCR loans, an appraisal may include a rent schedule (often a form estimating market rent) that helps establish the property’s qualifying rental income. This market-rent figure can be used in the DSCR calculation, sometimes alongside or instead of an existing lease. Practices vary by program and property type.
Key Takeaways
- An appraisal may include a rent schedule estimating market rent.
- Market rent can feed into the DSCR calculation.
- It may be used alongside or instead of a lease.
- Practices vary by program.
What a Rent Schedule Is
A rent schedule is documentation, often part of the appraisal, that estimates the market rent a property could command. On DSCR loans, this market-rent estimate can be used to establish qualifying income, particularly when there is no current lease or when a program relies on market rent.
How It Affects Qualification
Because qualifying rent feeds into the DSCR calculation, the market-rent figure from a rent schedule can influence the ratio. When both a lease and a market-rent estimate exist, programs may specify which to use. Practices vary by program and property type.
Frequently Asked Questions
- Is the appraised market rent the same as my lease?
- Not always. The appraised market rent is an estimate that may differ from an existing lease. Programs specify which figure applies to the qualifying calculation.
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This article is for general educational purposes only and is not financial, legal, tax, or lending advice, a commitment to lend, or an offer to enter into a rate-lock agreement. All loans are business-purpose investor loans subject to underwriting, property review, investor guidelines, and applicable law. Program availability and terms vary by state and transaction. Simple DSCR is an assumed business name of WooHoo Mortgage LLC, NMLS #2347993.