Mortgage Navigator • Conventional • Occupancy
Current home pending sale
Having a contract on the old home does not always mean its mortgage payment disappears from qualification.
Fannie current framework
Fannie's September 2, 2026 other-real-estate-owned guidance determines how the current property's PITIA is handled based on its status at the time of the new transaction.
Documentation matters
A lender may need evidence of the executed sales contract, financing contingencies, closing status or payoff depending on the scenario before excluding or changing treatment of the existing housing payment.
Planning point: qualify the new purchase both ways early—once with the old payment and once under the applicable pending-sale exclusion—to avoid a surprise if the old closing is delayed.
Official guide baseline
Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide
Occupancy must reflect the borrower's actual intended use. Misrepresenting occupancy can constitute mortgage fraud.