WORDS I LIKE — Every shortcut hides a tradeoff.
You think you can just rent out your old house and buy the new one.
Sign a lease, show the rent, done.
That's not exactly true anymore.
Fannie Mae just tightened how that rental income actually gets counted.
The Detail That Changes The Decision.
A departing residence is what underwriters call it. You keep your current house and turn it into a rental. Meanwhile, you buy a new primary home. The rent from that house can help you qualify — if a lender believes the number.
Fannie Mae's September update reorganized exactly how that number gets proven. A signed lease alone isn't always enough. Lenders increasingly want a documented market-rent estimate — the kind an appraiser builds, not what a listing site guesses.
Most people assume any rent estimate works. What's actually smarter: treat the number like an appraisal, not a guess. A market-rent pull on a real Denver single-family home came back at $2,910 a month. The range ran $2,500 to $3,320 — narrowed with real comparables, the way lenders actually want it.
This matters most right now. Denver's resale market has slowed. More move-up buyers are weighing "keep and rent" instead of selling first.
The house doesn't change. What counts as proof of its rent just did.
THIS WEEK'S TAKEAWAY
Get your rental number documented like a lender will require — not just estimated.
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PS
Thinking about renting out your current house instead of selling — reply "rental" and I'll send the documentation checklist.
No spam. No sales pitches. Just clarity.
— Neil Christiansen, Certified Mortgage Advisor
