09/10/2026
🫵 Realtors and Homebuyers: There's a recent Conventional loan guideline change that almost nobody is talking about... and here's why you need to know about it.
It just got so much easier to keep your current home, turn it into a rental, and still qualify for your next home purchase. 🏠
→ No need to have a tenant lined up before closing
→ No signed 12-month lease required
→ No requirement for 1st month's rent and security deposit to be collected in advance
Here's why this is such a big deal.
📉 Many current homeowners are sitting on their 3% - 4% mortgage rates and do not want to give it up. They WANT and NEED to move, but selling means losing that low fixed interest rate.
So now, Ellason Mortgage is able to offer an alternative...
✨ Keep the current home
✨ Buy the next one
✨ Rent the current one out AFTER closing
PREVIOUS guideline requirements if using rental income from the home you were leaving would typically require:
✅ Finding and locking down a future tenant
✅ Providing a signed 12-month lease agreement
✅ Documenting the upfront collection of the security deposit and 1st month's rent, before closing on the new home
These requirements created a timing problem for some that made keeping the current house nearly impossible. For homeowners sitting on rates they may never see again, this is an option they may very well consider.
Here's how it can work:
✨ We document the home's market rent using one of several options (see image)
✨ Multiply that amount by 75%
✨ Use that amount to offset the existing mortgage payment
As an example:
→ If the current home's monthly market rent is determined to be $2,400
→ 75% of that amount is $1,800 a month
→ If the current mortgage payment is $1,900 a month, almost the entire payment could be offset for qualifying purposes
Do you have questions about how to structure your next move? 🚛
Connecting is easy...
📲 Call or text: 205-886-5251
📧 Email: [email protected]
💬 DM me
🚀 Ready to get started? Apply Now: www.FinancedByMatt.com
📍 Come by our office for a visit
