The FHA has instituted new rules that will effect home owners who want to move but cannot sell their existing home. Many of these owners have elected to rent their existing home to free them to buy a new home. Now FHA says your income will have to be sufficient to cover both mortgages. Previously you could show the rental income as sufficient to cover the first mortgage and free yourself to purchase a new home. Rental income will no longer be allowed. FHA feels to many people were buying a new home under these circumstances with the intent to quit making payments on the first home and let it go back to the lender (they call this "buy & bail"). FHA says they will only loan money for "principal" residence and not for investment/income properties. They will make an exception if you can prove you are relocating for employment reasons and have a 25% equity position in the first home. This will severely restrict the average person from renting and moving.