Renting Out Current Home and Financing a New One

[Chris Roberts]

I'm looking to rent out my current home and finance a new primary residence. Can a lender use future rental income determined by an appraisal to potentially cover the previous mortgage?

I have heard two different things:

1) No, you must have a signed lease with security deposit, etc.

2) Yes, you will get a rent appraisal and that will be used to determine future rental income