Short answer: Under Fannie Mae’s September 2, 2026 departing-residence rules, a signed lease is not used to document projected rent from the home you’re leaving. A lender may use an appraisal rent estimate or supported market-rent analysis instead. Approval still depends on your full finances and the lender’s requirements.
For some Austin homeowners, the plan is simple: buy the next house and keep the current one as a rental. The financing question is less simple: Can future rent help me qualify before a tenant moves in?
What changed for conventional financing?
Fannie Mae now has a specific rule for a primary home you’ll vacate and convert to an investment property when buying your next primary home. The lender can document market rent with an appraisal, a Single-Family Comparable Rent Schedule (Form 1007), or market analysis supported by at least three comparable rentals. Fannie Mae says lease agreements are not permitted for this departing-residence calculation. That can remove the scramble to sign a lease before closing.
Does the full expected rent count as income?
No. Fannie Mae starts with 75% of documented market rent, then subtracts the departing home’s full monthly payment, including principal, interest, taxes, insurance, and any association dues (PITIA). A positive result may only offset that home’s payment; it does not create extra qualifying income. A negative result counts against your debt-to-income calculation.
For example, if supported market rent is $2,500 and the home’s PITIA is $1,800, 75% of rent is $1,875. That leaves a $75 offset—not $700 of extra income. This is an illustration, not a quote or approval.
What should I check before shopping for the next home?
- Get a realistic rental estimate for your specific Cedar Park, Leander, Round Rock, or Austin property—not the highest online listing you can find.
- Know the complete payment on the home you’re keeping.
- Review cash reserves. Fannie Mae requires six months of reserves for the departing home when the borrower has less than 12 months of property management experience; other reserve rules may also apply.
- Ask your lender when it is applying the updated rule. Fannie Mae permits lenders to adopt the September update immediately and requires it by December 1, 2026.
Can I keep my low-rate mortgage and still move?
Possibly. Keeping that mortgage may be part of a smart long-term plan, but it needs a real cash-flow and qualification review. I can compare keeping the home as a rental, selling it, and other buy-before-you-sell options side by side. You can also explore the Texas Mortgage Loan Guide.
Ready to run the numbers? Send me the address of the home you own and the price range for your next one. I’ll help you see what is realistic before you make an offer. Contact Stephanie Donnell.
Stephanie Donnell | Edge Home Finance, LLC | Company NMLS 891464 | Austin branch NMLS 2514483. For informational purposes only; program terms and eligibility are subject to lender, borrower, and property review. Not a commitment to lend. NMLS Consumer Access.