The Quick Read: Signed leases carry the weight, and a rent roll only organizes them. A rent roll is your own unit-by-unit summary of who pays what, so it helps the underwriter read the file but does not replace the leases. If you live in one unit of the fourplex, expect to hand over both, plus proof the rent was actually received.
Here is the honest answer on who each option is for. Signed leases are for every owner-occupant of a 2-4 unit home, because they are the primary evidence. A rent roll is for the owner who wants the file easy to read: four units, four tenants, four lease dates on one page. Neither is a choice, really. You lead with leases and add the roll as a cross-check.
Cash-out refinance estimate
The starting figures are an example value with a balance and a cash request in proportion. Replace them with yours.
Editable benchmark: 7.24% as of October 29, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a cash-out refinance quote.
Illustrative starting assumptions: a $350,000 home value, a $193,000 current balance, the agency cap on a one-unit principal residence, a thirty-year term at the current Freddie Mac benchmark, and property taxes and insurance estimated at typical national rates. Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a cash-out refinance quote; a cash-out loan is priced by the lender at lock. The cash available is the loan the program cap allows less the balances paid off, before closing costs, which are not included. The HELOC line is the program’s combined loan-to-value ceiling applied to the same value and balance. Taxes and insurance are editable estimates. Licensed in sixteen states for consumer mortgages.
Some context first. This article covers a fourplex where you live in one unit. That makes it a principal residence, not an investment property. Across the wholesale programs we place files with, occupancy sets the leverage, and that is the last word on rental properties you will read here.
Side-by-Side
| Factor | Signed Leases | Rent Roll |
|---|---|---|
| What it is | Binding agreement with each tenant | Landlord-prepared summary of all units |
| Primary evidence? | Yes | No, a supporting document |
| Who writes it | You and the tenant | You |
| What it shows | Rent, term, dates, signatures | Snapshot of units, tenants, rent, lease dates |
| What it cannot show | Whether rent was actually paid | Whether the leases say what you claim |
| Pairs with | Appraiser’s market-rent opinion, deposits | The leases themselves |
| Documentation burden | Moderate: one lease per unit | Light: one page you build |
Leverage, credit floor and mortgage insurance do not change with the document you choose. They follow the program and your occupancy. For a conventional cash-out on a two- to four-unit principal residence, the verified figure is 75% LTV (loan-to-value, the loan as a percentage of the home’s value). The credit floor starts at a 620 decision score on the wholesale conventional programs, subject to lender guidelines and full file review. Mortgage insurance is required above 80% LTV on the agency path, which a 75% cash-out never reaches.
Why “Rent Roll” Is a Loose Term
Agency rules do not use “rent roll” for an owner-occupied 1-4 unit home. The documents that matter are signed leases, the appraiser’s market-rent opinion, your tax return and proof of deposits. That is our reading of how the rules fit together, not an agency statement.
The appraiser’s opinion matters more than most owners expect. On a 2-4 unit home, the appraiser completes the Small Residential Income Property Appraisal Report, which includes a market-rent schedule. So you end up with three rent numbers: what the lease says, what your roll says, and what the appraiser thinks the unit should rent for. The underwriter compares all three.
Does the Rent Even Count?
Often the question comes down to one thing: does your household need the rent to qualify? If you qualify on your own income, the rent may stay out of your ratios. The gross rent per unit still gets documented and reported to Fannie Mae, so the lease-versus-roll question does not disappear. It just moves from the approval to the appraisal and the file data.
If you do need the rent, here is how Fannie Mae’s rules treat it. Per the Fannie Mae Selling Guide topic on subject-property rental income, the property types covered include two- to four-unit principal residences. The rent from your own unit generally cannot be used. The other units’ rent is the usable income.
Two methods apply:
- Not on last year’s Schedule E: the lender takes 75% of the lease amount and subtracts the property’s full monthly housing cost.
- On Schedule E with no lease exception: the lender runs a cash-flow analysis from the tax return, averaged over 12 months.
So the tax return is the default when you owned and rented the unit last year. The lease is the fallback or supplement. Notice that rent used for lender review is a haircut of the gross, not 100%. It can differ a lot from what lands in your bank account.
One caution on cash-out specifically. Freddie Mac’s treatment of subject-property rent can differ between a cash-out and a no-cash-out refinance. Read Freddie Mac’s rental income section yourself, or ask the loan officer which path your file would follow. Some files simply qualify without the rent.
When Signed Leases Are the Better Fit
Leases win in most situations. Use them as your lead document when:
- The unit was not on last year’s tax return. A newly rented unit or a recent purchase has no Schedule E history. The lease is how the income gets documented.
- Your return does not show the current picture. An older Fannie Mae rule allowed a current lease where the return misses reality, such as a major renovation or a rental gap the year before. Confirm the current wording with your loan officer.
- A rent increase is the whole point. A new lease at higher rent does not raise your qualifying income by itself. Fannie Mae’s 2023 selling guide announcement says the lease amount must be supported by the appraiser’s market-rent form, or the lease must show it has started, with proof of at least two months’ rent received. That is the principle: a lease alone is not enough. Check the current topic for exact wording.
- You want the cleanest legal record. The lease is the document a tenant signed. A roll is a document you typed.
Leases have limits. They prove what the tenant agreed to pay, not what the tenant paid. That is why bank deposits matter. A lease with no deposit history, signed days before you applied, invites questions.
When a Rent Roll Is the Better Fit
A rent roll earns its place as a companion. It is the better fit when:
- The file needs organizing. Four leases in four formats are hard to scan. One page showing unit, tenant, rent, lease start and end, and deposit date lets an underwriter match each line quickly to the paper behind it.
- You are catching your own mismatches. Building a roll forces you to notice that Unit 3’s lease expired last spring, or that Unit 2 pays less than the paperwork says. Better you find it than the underwriter.
- Some units fall outside a standard lease. Month-to-month tenants, a holdover after a lease ended, or a vacant unit all show up clearly on a roll. Add a note beside each.
- The appraiser needs a reference. A tidy schedule helps the appraiser complete the rent section accurately.
The limit is plain. A roll is a summary, so by itself it supports the leases but does not replace them. If your roll and your leases disagree, the lease usually governs, and the roll needs fixing. Do not send a roll that claims higher rent than the paper shows.
A Fourplex Example
Run the numbers on a fourplex with you in Unit 1 and three tenants.
- Unit 2: two-year lease in place, rent deposited every month. The lease, roll and deposits all agree.
- Unit 3: lease expired and the tenant stayed month to month. The roll should say. The underwriter will want to know whether rent is still being paid on time.
- Unit 4: new lease signed at higher rent, one month of deposits. The appraiser’s market rent may not support the higher figure, so the lender may count less.
Your own unit does not count as rent. Now say the loan is a conventional cash-out at 75% LTV. The three tenant units produce some rent, the lender applies the 75% haircut, and the household’s debt ratios either work or they do not. The wholesale conventional programs allow a total ratio ceiling of 50% on automated findings. Whether your file gets there depends on how much of that rent the lender can count. Cleaning up Unit 3 and Unit 4 before you apply is the difference between a clean review and a stalled one. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
When the Documents Disagree
| Problem | Usual reaction | Typical fix |
|---|---|---|
| Roll rent higher than lease | Lender uses the lease figure | Correct the roll |
| Lease expired, tenant stayed | Questions about ongoing payment | Show deposits, note month-to-month |
| Lease signed just before applying | Needs support | Appraiser’s market rent or proof of payment |
| Unit vacant | Likely no income counted | Mark vacant, qualify without it |
| Informal handshake tenant | No lease to rely on | Sign a written lease, then show deposits |
Practitioner note: in files like this, the delay almost never comes from the rent being too low. It comes from paperwork that does not match. One owner whose roll, leases and deposits line up gets a quieter review than one with better rent and messy records.
What to Gather Before You Apply
1. A signed lease for every occupied unit.
2. Your most recent signed tax return, including the rental schedule if the property appears on it.
3. Bank deposits showing rent received, especially on new leases.
4. A one-page rent roll: unit, tenant, rent, lease start and end, and status.
5. A note on any vacant, renovated or month-to-month unit.
Commercial space in the building is a separate matter. HUD’s guidance excludes commercial income from rental income on the FHA path, and a storefront downstairs complicates any program.
Key Terms Defined
Rent roll: A landlord-prepared schedule listing each unit, tenant, rent amount and lease dates.
Signed lease: The written agreement between you and a tenant that sets rent and term. It is the binding document.
Schedule E: The part of your tax return where rental income and expenses are reported.
Cash-out refinance: A new mortgage larger than your current one, with the difference paid to you.
Principal residence: The home where you live. In a fourplex, it means you occupy one unit.
Which Should You Lead With?
Lead with the leases. Add the roll. Put both in the same order, unit by unit, so the underwriter can flip between them without hunting.
Choose a thin file only if you do not need the rent to qualify, and even then the gross rent gets reported. Choose a thick file when the rent carries your ratios. The Streamline and IRRRL products from FHA and VA are not cash-out routes, so they do not settle this question.
If you are weighing a cash-out refinance against keeping the loan you have, Lendmire can help you compare the programs and the equity each one reaches. Start with Lendmire’s cash-out refinance programs page. For a related look at proving rent, see Lendmire’s piece Signed Leases vs Market Rent for a DSCR Cash-Out on a Triplex. Tax treatment can depend on your situation; borrowers should speak with a qualified tax professional before relying on any deduction or credit.
Frequently Asked Questions
Do I need both a rent roll and signed leases?
You need the leases. The roll is optional but useful, because it lets the underwriter match each lease to a unit at a glance. Treat it as a cross-check, not a substitute.
Is a rent roll enough without leases?
Generally no. A roll is a summary you prepared, and agency documentation points to leases, tax returns and the appraiser’s market rent. Subject to lender guidelines, a roll alone leaves the income unsupported.
Which rent counts if the lease and roll differ?
The lease usually governs, and the roll needs correcting. The lender may also compare the lease amount to the appraiser’s market rent and use the more supportable figure.
What if a tenant’s lease expired?
A month-to-month tenant can still be documented. Mark the status on your roll and show deposits proving rent continues. Some lenders may ask for a new signed lease.
Does the rent from my own unit count?
Generally not. Fannie Mae’s rules treat the unit you occupy as unusable for qualifying, so only the other units’ rent is considered. Program figures are subject to lender guidelines and full file review, and nothing here is a commitment to lend.
For your own numbers, request a scenario review with Lendmire.
For current guidelines and terms, see Lendmire’s refinance programs page.
About Lendmire
Lendmire, NMLS# 2371349, is a mortgage brokerage with consumer lending licenses in 16 states. FHA, VA, conventional and jumbo purchase and refinance loans are arranged through wholesale lending partners, and each application is reviewed individually by the lender. Scotsman Guide named Lendmire a Top Mortgage Workplace in both 2025 and 2026.
Get Started
Ready to find the right loan for you?
See your offer in seconds. No credit pull, no obligation.
Informational only. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
References
1. Fannie Mae Selling Guide B3-3.8-02, Rental Income from the Subject Property
2. Fannie Mae Selling Guide Announcement SEL-2023-09
This article is part of Lendmire’s cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: Can You Do a Cash-Out Refinance After a Parent Adds You to the Deed? · Cash-Out Refinance Requirements With a Loss on Your Return · Cash-Out Refinance Requirements and LTV Limits
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
- Mortgage Loan Originator · NMLS# 1129696 · Verify on NMLS Consumer Access
- North Carolina Real Estate Broker · License# 343312 · Verify on NCREC
- North Carolina Insurance Producer · License# 19053198 · Property, Casualty, Life, Health · Verify on NAIC SBS
- Lendmire LLC · Firm NMLS# 2371349 · Verify firm licensure
Disclosure information. Lendmire is a state-licensed mortgage brokerage under NMLS# 2371349. Lendmire is not a depository institution, direct lender, or financial advisor — all loans referenced are placed through wholesale lender partners and are subject to each lender's underwriting standards. This article is provided for general informational purposes and is not a commitment to lend, nor does it constitute financial, legal, or tax advice. Loan programs, terms, rates, and qualification standards change without notice and depend on borrower profile, property type, and the state in which the subject property is located. Equal Housing Opportunity provider. NMLS Consumer Access: nmlsconsumeraccess.org.