How to use first home as rental while getting 2nd home?

[Kate Wingate]

Hello! I hope this isn't a repeat question but I'm such a newbie. We have a small SFH that we refinanced in October to take advantage of low rates. We are now considering buying a new (larger) SFH or duplex/triplex possibly. Our lender on our current home said we shouldn't run into any issues getting financing for a second home if our intent is to sell our current home and we write a letter to that effect to the lender, but said we could only get an investor loan on a second home if we finance with that lender if we decide to hang on to our current SFH and rent it.

So how can I get a second home loan for an owner-occupied property with less than 20% down while still holding on to our current SFH and renting it? Does this just mean I need a different lender, or am I going to run into this issue no matter who the lender is? I’m a little confused on why it would matter that I have an existing mortgage (other than we are still in the first year of our new refinanced mortgage).

Can someone break this down for me and explain better what is going on here/how we can move forward with a second SFH or residential multi family without getting an investor loan? Thanks so much!!