Can I see the appraisal?

Yes. Ask the desk for a copy once it is delivered.

Can I choose the appraiser?

No. Independence rules put the order through a management company.

What if the appraisal comes in low?

Renegotiate, bring the difference in cash, or file a reconsideration with better comparables.

Is a desktop or drive-by ever allowed?

On some programs and loan sizes. Practice varies by lender; assume a full interior report.

The borrower, usually at the point of order. It is a third-party cost.

LESSON 6 OF 64 MIN READ

How does the appraisal work on a DSCR loan?

The lender orders the appraisal through an independent management company, you pay for it, and it does two jobs on a DSCR file: it sets the value that caps your leverage and, through the Form 1007 rent schedule, it often sets the income that drives your ratio. Expect one to two weeks in most markets and longer in rural ones. A conclusion you believe is wrong can be rebutted, but only with better comparable data — not with an opinion.

THE NUMBERS

Minimum DSCR	0.75 (0.75–0.99 prices at +62.5 bps, 70% LTV cap)
Maximum LTV	80% purchase or rate-and-term · 75% cash-out
FICO floor	660 (below that the desk does not lend)
Loan size	$100K – $3M single · $10M portfolio
Reserves	6 months PITIA · 12 months on a portfolio
Prepay options	5-4-3-2-1 par · 3-2-1 +25 bps · 1-yr +50 bps · none +87.5 bps
Typical days to close	21–30 days from a signed term sheet
Rate sheet	Silt Rate Desk — Market Composite Sept 2026 · effective 2026-09-01

ILLUSTRATIVE — published program floors, not a quote or a commitment to lend. Subject to underwriting, appraisal and final credit approval.

Who orders it and why you cannot

Appraiser independence rules keep the borrower and the sales side out of the ordering chain, so the lender places the order through an appraisal management company. You cannot pick the appraiser, and you should not contact them directly — questions and evidence go through the desk. What you can do is make access easy, which matters more than most borrowers realise on occupied rentals.

The forms you will see

Form 1004 is the standard single-family report. Form 1025 covers 2–4 unit small residential income property and includes an operating income statement. Form 1007 is the single-family comparable rent schedule and is ordered alongside 1004 on rental files. On condos, Form 1073 applies. Read the rent schedule first — on a DSCR loan it is frequently the page that decides the deal.

Timelines and what slows them

One to two weeks is normal. Rural properties, unusual construction and busy seasons stretch it. The two avoidable delays are access — a tenant who will not let the appraiser in, or a lockbox nobody can find — and incomplete instructions on multi-unit properties where the appraiser needs to see every unit. Give the desk tenant contact details on day one and warn the tenants yourself.

Condition findings and 'subject to' reports

If the appraiser notes a required repair — an inoperable system, missing appliances, an active leak — the report comes back 'subject to' completion, and the loan cannot close until the work is done and a re-inspection is filed. That costs a small fee and typically a week. Photograph the property honestly before ordering; a surprise finding at day twelve is the most expensive kind.

How to rebut a value or a rent conclusion

A rebuttal — formally a reconsideration of value — is a short written submission through the desk containing three to five genuinely comparable closed sales or current leases the appraiser did not use, with a one-line explanation of why each is more comparable than the ones selected. Superior comparables win; disappointment does not. Factual errors are the strongest ground: wrong square footage, missed bedroom, wrong lot size, a comparable in a different school boundary. Practice varies by lender on turnaround and success rate.

Reuse, transfers and second appraisals

An appraisal ordered by another lender generally cannot be transferred, so budget for a fresh one if you move lenders mid-file. Some programs allow a second appraisal on large loans or where the first is materially disputed, usually at the borrower's cost, and treatment varies by lender. Most files never need one — the more productive spend is getting the first order placed early.

When the value comes in low

Purchase price	$400,000
Appraised value	$382,000
Loan at 75% of the lower figure	$286,500 — not $300,000
Extra cash required	$13,500
Options	Renegotiate · bring cash · rebut with comparables
Rebuttal accepted at $398,000	Loan returns to $298,500

Leverage is always taken against the lower of price and appraised value on a purchase. Illustrative only.

WHAT WE NEED FROM YOU

Tenant contact details. So access can be arranged on the first attempt.
Improvement list with receipts. Recent work the appraiser should credit.
Rent roll and leases. The appraiser is asked for market rent, not your lease, but context helps.
Rebuttal comparables. Closed sales or current leases, with a line on each.

FREQUENT QUESTIONS

Can I see the appraisal?: Yes. Ask the desk for a copy once it is delivered.
Can I choose the appraiser?: No. Independence rules put the order through a management company.
What if the appraisal comes in low?: Renegotiate, bring the difference in cash, or file a reconsideration with better comparables.
Is a desktop or drive-by ever allowed?: On some programs and loan sizes. Practice varies by lender; assume a full interior report.
Who pays, and when?: The borrower, usually at the point of order. It is a third-party cost.

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