Renting Primary Residence Instead of Selling with <20% equity

My wife and I purchased our home in Dallas in Apr’20 with 5% and have lived in it for the last ~2 years. We’re going to be moving to Austin at some point in 1Q’22 and would like to rent out our current Dallas home instead of selling it. According to our lender (based on the original appraisal), we’re currently at 8% equity in the house, whereas the market comps for an appraisal are somewhere near 20-22%. In reading our deed of trust’s occupancy covenant, it states that we’d need to use the property as our primary residence within 60 days of closing and continue to occupy it for at least one year. We’ve satisfied both of those statements and would be changing our primary residence to a home in Austin.

Would our satisfaction of that mean that we’d be alright to (a) lease the property out without any pay-down to get to 20% equity and (b) avoid a re-appraisal that might not capture the market-value of the property?

submitted by /u/Hunter13coleman
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My wife and I purchased our home in Dallas in Apr’20 with 5% and have lived in it for the last ~2 years. We’re going to be moving to Austin at some point in 1Q’22 and would like to rent out our current Dallas home instead of selling it. According to our lender (based on the original appraisal), we’re currently at 8% equity in the house, whereas the market comps for an appraisal are somewhere near 20-22%. In reading our deed of trust’s occupancy covenant, it states that we’d need to use the property as our primary residence within 60 days of closing and continue to occupy it for at least one year. We’ve satisfied both of those statements and would be changing our primary residence to a home in Austin. Would our satisfaction of that mean that we’d be alright to (a) lease the property out without any pay-down to get to 20% equity and (b) avoid a re-appraisal that might not capture the market-value of the property? submitted by /u/Hunter13coleman [link] [comments]

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