This is still a conventional mortgage, so normal Fannie Mae qualification requirements apply. The difference is how rental income from the home you’re leaving may be documented and considered.

Typical requirements include:

• Your current primary residence will become a rental property
• You are purchasing a new home that will become your primary residence
• Your current housing payment must be documented
• Expected rental income must be supported by acceptable market-rent documentation
• Rental income may be determined using an appraisal, comparable rent schedule, or eligible market-rent analysis
• A signed lease for the departing residence is not required
• Standard credit, income, asset, debt-to-income and property requirements still apply

Important: The amount of rental income that can be used for qualification will depend on the property, documentation and your overall loan profile.