Mortgage Navigator • Conventional • Rental Income

Departing residence rental income

Renting out the home you're leaving can help—but departing-residence rules are stricter than ordinary investment-property rules.

Fannie

Fannie places departing residences in their own rental-income category. A lease agreement is not permitted as the ordinary standalone method for determining qualifying rental income under the general lease rule; the departing-residence section controls the documentation and treatment.

Why the special treatment?

The borrower is converting a current primary residence while taking on a new housing obligation, so the agency wants evidence supporting that the rental arrangement and resulting cash flow are credible.

Agency Difference — worth checking: departing-residence treatment is a classic Fannie-vs.-Freddie comparison. Documentation, reserves and usable positive rental income can differ by execution.

Official guide baseline

Fannie Mae Selling Guide · Freddie Mac Seller/Servicer Guide

Rental-income rules are transaction-, property-, ownership-history- and management-experience-specific. Current guide controls.