Homeowners opting to buy a new home while renting out their old house may face challenges when trying to refinance their existing properties, an article in Newsday reports.

The article explains that lenders usually require a borrower to have at least 25% equity before they will refinance a loan secured by a non-owner occupied house. Additionally, lenders follow a 75% maximum loan-to-value ratio; however, some are flexible about credits scores, income and cash reserve. 

Other factors such as if the tenant is a family member also contribute to the lender's decision.