Great question. There are various factors for you to consider when purchasing a new primary residence and renting out your current home. When you are transitioning your primary residence and want to use rental income you need to have at least 25% equity in the property and a lease signed from the prospective renter to use rental income to offset the debt. If you don't havfe 25% equity you need to have 2 years of tax returns to show the property has been rented, for the last two years, which you probably don't currently have. The other alternative would be to get prequalified for an amount that would allow you to be able to afford both the old and the new payment. You don't need to have 20% down if you will use the new residence as a primary residence, typically, you'll need at least 5% down for a transaction like this. However, you may want to speak with me further so we can look at a full assesment of your financial picture and determine exactly where you stand. Hope this helps you out.