We may need to relocate to another state. We would like to buy a home there if we move, but cannot affort to sell the one we currently occupy due to low equity so we will rent it out. What kind of financing options are there for this situation. Do lenders consider your rental income?

All lenders will use the rental income from the property as "income" (ideally, it will offset the mortgage liability on the home completely), and as long as you can provide a lease agreement, the lenders will consider your new home purchase an "owner occupied" property.....allowing you to be considered for the most attractive financing terms. With a 580 or better (VERY general statement) you should be able to qualify for a no-down-payment type of loan. The better your credit (and income documentation, job history, etc....all the normal qualification criteria) the better rate you will be able to obtain. Email me at the address in my signature if I can be of assistance (if you need a pre-approval for your new purchase, or can't get your hands on a lease contract, or just want some guidance as far as what steps to take next.).....Best of Luck to you!