Buy before you sell · · Mike Certo, NMLS #260555
What is a Form 1007 rent schedule?
A Form 1007 is an appraiser's estimate of what your home would rent for, based on comparable rentals nearby. It matters for buy-before-you-sell because it lets you count rental income to qualify for your next home even before you've signed a tenant on your current one.
What the Form 1007 actually is
When you keep a home and rent it out, the lender needs to know what it will rent for. A signed lease answers that. But if you haven't found a tenant yet, a Form 1007 fills the gap: it's a standardized report where a licensed appraiser estimates your home's monthly market rent. That number becomes the rent the lender uses, so you don't have to advertise the place and sign a renter before you can qualify for the next house.
How the appraiser sets the rent
The appraiser pulls recent rentals of similar homes nearby, comparable in size, condition, and location, and adjusts for differences, the same way a value appraisal uses sale comps. The result is a supported monthly market rent for your specific home, not a guess. Because it's documented by a third party, the lender can rely on it.
How much of the rent you can use
On programs that allow rent without a lease, about 75% of the Form 1007 rent is applied against your current home's payment. The remaining 25% is held back for vacancy and upkeep. If that 75% covers the payment, the payment effectively stops counting against you. See how renting your home out lets you qualify »
Which loans accept a Form 1007 with no lease
This is the catch: not every program counts rent without a signed lease and deposit proof. Some do; some require the lease. As a direct lender with a deep bench of programs, we know which ones accept the Form 1007 estimate, and we route your file to the one that lets the rent count for your situation.
Want to keep your home and qualify on the rent?
Tell us your current payment and what the home would rent for. We'll tell you whether a Form 1007 gets you there, and which program accepts it.
Talk to MikeRelated
- Rent out your current home and buy the next one
- All three ways to qualify without selling first
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FAQ
What is a Form 1007 rent schedule?
A Form 1007 is a single-family comparable rent schedule: an appraiser's analysis of what your home would rent for, based on comparable rentals in your area. It documents the monthly market rent a lender can use to qualify you.
When do I need a Form 1007 instead of a lease?
If you already have a signed lease plus proof of the deposit, that documents the rent. A Form 1007 is used when you don't have a tenant yet, so you can still count the market rent and move before you've rented the home out.
How much of the Form 1007 rent can I use?
On programs that allow rent without a signed lease, roughly 75% of the market rent the appraiser sets on the Form 1007 is used to offset your current home's payment. The other 25% is held back for vacancy and upkeep.
Does every loan accept a Form 1007 with no lease?
No. Some programs require a signed lease and proof of deposit before counting rent; others accept the appraiser's Form 1007 estimate with no tenant. We match you to a program that accepts the rent estimate for your situation.
Who orders the Form 1007?
It's part of the appraisal on the home you're keeping. The appraiser completes the Form 1007 rent schedule along with (or instead of) a value appraisal, depending on what the loan needs.