Financing options for second home

[Niesha F.]

We plan to purchase a new primary home in about 2-3 years. We currently have an FHA mortgage on our existing property with about $80-100k current equity. When we purchase the new property, we'd have about $20k to use as a down payment saved, but are wanting to go the USDA loan route for moderate income limits (we're staying in the same area which is within the rural map zone).

Our biggest problem is that we want to rent out our existing home instead of selling it, which obviously effects our DTI for a mortgage on a second home at income caps. Currently our DTI is about 35.4%.

Looking for insight on next steps and if we should consider another option to purchase our new primary residence.