Airbnb Income Counts Toward Refinancing

Dated: 02/12/2018

Views: 49

Airbnb Income Counts Toward Refinancing

DAILY REAL ESTATE NEWS | MONDAY, FEBRUARY 12, 2018

With the backing of Fannie Mae, home-sharing giant Airbnb has announced a new partnership with select lenders, including Quicken Loans, Citizens Bank, and Better Mortgage, that will allow homeowners to report rental earnings as part of their income when applying to refinance a mortgage. Owners who rent rooms on Airbnb had been facing delays, higher interest rates, and loan limitations when refinancing.

“This initiative was developed to identify new ways of recognizing home-sharing income, making it possible for homeowners to maximize their investment to better reach their financial goals,” Airbnb said in a statement. “The project is part of Fannie Mae’s work to find new, innovative ways to expand the availability of affordable mortgage credit.”

If the initial program goes well, Fannie Mae may consider extending it to all of its lenders, according to reports. Airbnb will provide hosts with a proof of income statement that they can use when refinancing an existing mortgage.

Housing studies show mixed results when it comes to the effect of Airbnb on local markets. Some show that a greater number of Airbnb listings in a given location can lead to a slight increase in rents and home prices. Others, however, suggest Airbnb restricts long-term rent growth. Some cities, such as Baltimore and Detroit, are considering new zoning requirements to limit Airbnb rentals in its communities.

Source: Airbnb and “Refinancing a Mortgage? You Can Now Count Airbnb Income,” Curbed.com (Feb. 9, 2018)

Want to Advertise on this Site?

Latest Blog Posts

2 0 1 8 KITCHEN TRENDS

9 TOP TRENDS IN KITCHEN DESIGN FOR 2018Decades ago, the kitchen was hidden in the back of the house. It was a place where meals were prepared and dirty dishes were washed. Fast forward to

Read More

Single Women Over 55 Double Their Buying Force

© Richard Drury - DigitalVision/Getty Images Single Women Over 55 Double Their Buying ForceJuly 3, 2018Single women over the age of 55 have been the fastest-growing

Read More

FIRE PIT OR MONEY PIT

Fire Pit or Money Pit? 8 Ways to Avoid Overspending Don’t do built-in seating. Your butt (and budget) will thank you for it.Indoor evenings on the couch are so last season. Literally. With spring

Read More

SUMMER PROJECTS

10 Summer Projects That’ll Leave No Doubt Your Home Says ‘YOU’ Here’s how to customize your house with your own personality and charm.You started calling it yours the day you signed those

Read More