Lenders using Airbnb Income for loan application

3 Replies

Has anyone had any success using Airbnb income for a loan application? I have heard rumors that some smaller banks may consider it on a case by case basis. Any guidance on this would be appreciated.

Sebastian

Originally posted by @Sebastian E. :

Has anyone had any success using Airbnb income for a loan application? I have heard rumors that some smaller banks may consider it on a case by case basis. Any guidance on this would be appreciated.

Sebastian

 It's scenario dependent. Purchase v refi, furnished rental income from subject prop v non-subject prop, new self employment furnished rental income v 2 years of self employed furnished rental business income, etc etc etc.

Thanks @Chris Mason it is a unit in 4 unit building. The other 3 are long term leases and the 4th is a furnished STR that I have been seasoning since March.

@Sebastian E. For a "conforming, conventional" loan (loans governed by Fannie Mae and Freddie Mac) they will use potential rental income for a purchase.  So even if the property is vacant, they can still use the rental income of the property to qualify.  The rental income they will use will be based on comparable rents of the surrounding homes.  This report comes from the appraiser and the rent he/she will use will be the rents that are publicly shown and available AND are the 12 month lease type of rent.  So while the it might not be as high as the Air BNB rent at least they can use something to qualify you.  Where it gets really confusing with these loans types are that banks don't have to follow that rule. If they have overlays (rules that they put on top of Fannie/Freddie loans) then they might restrict this income or even remove it entirely.  The bigger the bank the more overlays they have.  That's why so many of us talk about using small to mid-sized lenders.  They have less "overlays".  But the guidelines states that if you are purchasing the property you can use the rental income.

Now, there is another loan type - "portfolio" loans.  These loan types come from the bank's own portfolio of money - thus the name.  Sometimes these are called commercial loans too.  But these rules could differ GREATLY between banks....because each bank decides on how they use their money.  In general, these loans carry a higher rate, might be adjustable, might be only a 15 year term....and sometimes all three of those! But they should be easier to qualify for.  And easier to count rental income as well.

Feel free to tag me and ask more questions if you need.  Thanks!

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