Form 1007 vs Form 1025: Rental Income & Appraisal

Form 1007

Fannie identifies the Single-Family Comparable Rent Schedule, Form 1007, as a permitted market-rent source in applicable single-unit rental scenarios.

Form 1025

A Small Residential Income Property Appraisal Report is used for applicable 2–4 unit properties and can provide market-rent analysis.

Market rent is not automatically qualifying rent

The presence of a rent schedule does not prove 100% of market rent can be added to borrower income. The rental category, documentation and rental-income calculation still control.

Recently purchased non-subject property

Under Fannie's new within-45-days category, a complete Form 1004 or 1025 with market rents can document gross rent; if no appraisal is available, Form 1007 can be used for a single-unit property.

Investor underwriting checklist

Identify occupancy, unit count, purchase/refinance/cash-out purpose, current ownership/title, financed-property count, current PITIA on every retained property, leases, Schedule E history, acquisition dates, reserves, entity ownership, short-term-rental use, condo/project status and the exact agency or private-investor program. Rental income should be calculated only after the property is placed in the correct underwriting category.

Where experienced analysis matters

A deal can fail because the wrong rent document was used, positive rental income was treated too generously, reserves were calculated incorrectly, an LLC mortgage was counted incorrectly, a newly acquired rental was analyzed under an older rule, or a private DSCR overlay was presented as if it were a Fannie/Freddie requirement.

Primary sources

• Fannie General Rental Income
• Fannie Subject Rental
• Fannie Short-Term Rental
• Fannie Non-Subject Rental
• Fannie Departing Residence
• Fannie Recent Rental
• Fannie Multiple Properties
• Freddie Investment Property

Last reviewed September 15, 2026. Private DSCR/portfolio guidelines vary by investor and are not agency rules.

How I would underwrite the scenario step by step

1. Identify agency conventional versus private DSCR/portfolio financing. 2. Build a complete real-estate-owned schedule with ownership, mortgage obligation, PITIA, rent, acquisition date and entity vesting. 3. Determine the permitted rental documentation for each property. 4. Calculate each rental separately under the applicable rule. 5. Count financed properties and calculate required reserves. 6. Review property/project eligibility, LTV, credit and cash-out/seasoning. 7. Only then compare pricing and decide which loan structure best fits the investor's strategy.

This sequence prevents a strong-looking property from being qualified with the wrong income methodology. For investors with several rentals, one incorrectly treated property can change DTI, reserves, financed-property count or even product eligibility.