Renting to refinance
Are you renting out your property on Airbnb? Soon, you might be able to count that income on your refinance application.Verify your new rate (Dec 11th, 2018)
A game-changer for Airbnb hosts
Airbnb is reportedly working with Fannie Mae, along with other lenders and institutions, to ensure home-sharing income is considered for refinance applications.
And according to Nick Papas, a spokesman for Airbnb, it’s a pretty big deal.
“For a long time, having this income considered wasn’t even an option,” Papas said.
A realtor.com report even said it could lead to higher interest rates or disqualify borrowers from certain types of loans. Because of increasing reports like these, Papas said Airbnb has started to discuss potential solutions with lenders – including how Airbnb hosts could provide proof of income for their rental earnings.Verify your new rate (Dec 11th, 2018)
The story so far
Fannie Mae has agreed to allow home rental income as part of its income qualification on refinance applications with Better Mortgage, Quicken Loans and Citizens Bank. Quicken Loans recently became the nation’s top-producing mortgage lender.
According to Nathan Blecharczyk, co-founder and chief strategy officer at Airbnb, this could be a big deal for many homeowners.
“Some of the nation’s largest financial institutions understand that Airbnb is an economic empowerment tool that can generate important income for families, and they are working to recognize this,” Blecharczyk said.
Vishal Garg, CEO of Better Mortgage, said Airbnb income could even qualify a borrower for a lower rate.
“Because of the sharing economy, the way people use their homes has changed … and now finally the mortgage industry has caught up,” Garg said. “We are able to use that income in actually underwriting the value of your house, your ability to make a payment on that loan, and then qualify you for a lower rate.”
To use home-sharing income on a refinance application, borrowers will need to have at least a 12-month history of documented earnings and the property must serve as their primary residence. In order to make the process as easy as possible on its hosts, Airbnb will now provide instant income documentation.
Get today’s mortgage rates
Excited to finally use your Airbnb income on refinance applications? Shop around and see what sort of rates you’d qualify for today.Verify your new rate (Dec 11th, 2018)