Do you happen to have a property that you are renting out on Airbnb? Well, there is a good news for you because soon, there might be a chance for you to count on the income you are making from your Airbnb and include this to your refinance application.
Airbnb Hosts Can Now Look Forward to a Total Game-changer
It has been reported that Airbnb is currently working hand in hand with Fannie Mae as well as other institutions or lenders to guarantee that the home sharing income is going to be considered for the refinance applications.
The experts in the field state that this is a really big deal.
According Airbnb’s spokesperson Nick Papas, for quite some time, considering this particular income was not even deemed as an option.
Another report also states that this might even pave way for much higher interest rates or even make some borrowers disqualified from several kinds of loans. Due to the increasing reports similar to these, Papas added that Airbnb has already started discussing possible solutions with the lenders, which include how the Airbnb hosts can provide the proof of income for their earnings from the rents they receive.
What’s the Real Story?
Fannie Mae has already agreed to let the income from home rental to be a part of their income qualifications on the refinance applications with Citizens Bank, Quicken Loans, and Better Mortgage. Not too long ago Quicken Loans have been named as the top producing mortgage lender of the nation.
According to chief strategy office and co-founder of Airbnb, Nathan Blecharczyk, it could really be a big deal for a lot of homeowners.
Several of the largest financial institutions of the nation are aware of how Airbnb serves as a tool for economic empowerment which can generate substantial income for the families, and they work to recognize it.
Better Mortgage’s CEO Vishal Garg, said that the income of Airbnb can even make a borrower qualified for a much lower rate.
Due to the sharing economy, there have been notable changes in the way people are using their homes, and this time around, the mortgage industry already managed to catch up. This income can now be used in actually underwriting a house’s value, a person’s ability of making a payment on this loan, and become qualified for a lower rate.
In order to use the income on house sharing on the refinance application, there is a need for borrowers to have a minimum of 12 months history of documented earnings. The property must also act as their main residence. For this process to be made easier on the part of the hosts, Airbnb will also be offering an instant income documentation.
If you are excited to put your Airbnb income to use on your refinance applications, the first thing you can do is to shop around to know what types of rates you would be qualified for today. This way, you can definitely make the most out of your income to the best way possible.