Mortgage Navigator • Conventional • Occupancy
Departing residence conversion
Moving out and renting the old home is allowed, but the lender must underwrite both the occupancy change and the rental-income treatment.
Occupancy changes
The old property becomes an investment property for qualifying purposes, while the new home must independently satisfy principal-residence occupancy.
Rental-income rules apply
Fannie's September 2026 guidance directs lenders to the dedicated departing-residence rental rules, reserve requirements and multiple-financed-property rules when applicable.
Do not rely on a new lease alone: departing residences have specific documentation and income-calculation rules that differ from ordinary established rentals.
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.