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What this task is

This task collects the current lease agreement for an owned property other than the subject property that is being used as a rental or investment property. The agreement should:
  • Be complete and unredacted,
  • Identify the property address, tenants, and landlord/owner, and
  • Show the rent amount, term, and key conditions.
The lease helps underwriters confirm both rental income and property usage.

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When this task is required

This task is required when:
  • An owned property is being used, or will be used, as an investment or rental property, and
  • The intended disposition is not Pending Sale or Sold, and
  • The borrower’s rental income or expenses from the property are relevant to underwriting.
Common situations include:
  • A departing primary residence that will be converted to a rental.
  • An existing investment property where the rent supports the borrower’s qualification profile.

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Why this task is required

Lenders must validate:
  • The existence, amount, and stability of rental income.
  • That the property’s occupancy type and use match what is stated in the loan application.
  • Any terms or conditions (such as short-term leases or unusual concessions) that might affect income continuity.
The lease agreement:
  • Provides a documented source of rental income to support underwriting calculations.
  • Helps confirm that the property is indeed being used as an investment or rental, not a second primary residence.
  • Assists in assessing the risk profile of the borrower’s real estate holdings.
Without the lease, the lender may not be able to count the rental income or may need to make more conservative assumptions that reduce qualifying capacity.

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Documents needed to resolve this task

To satisfy this task, provide:
  • A complete, signed, and dated lease agreement for the property:
    • All pages, unredacted, including any addenda or riders that affect rent amount or terms.
    • Clear identification of rent amount, lease start and end dates, and parties to the agreement.
  • If available, supporting documentation showing:
    • Recent rent receipts, bank statements, or payment histories that demonstrate actual rent being received under the lease.
These documents allow the underwriter to incorporate rental income and related obligations accurately into the borrower’s overall risk and capacity analysis.