Updated almost 5 years ago on . Most recent reply
Does AibNb/STR income qualify for new mortgage?
Specifically, if it's NOT your primary residence?
Anyone has experience with this yet? Seems like legislation is just now starting to catch up but after doing research, I still couldn't find a clear answer.
Most Popular Reply
If you have filed your taxes and this income is reflected on schedule E then yes it can be used as rental income for a Conventional mortgage. One difference between LTR and STR rental income is that LTR income can be used immediately at 75% of an active lease amount vs STR must be reflected on taxes. We also allow projected rental income when you are purchasing so 75% of the fair market rent value as deemed by the appraiser can be used as you are purchasing. Whether or not the appraiser will use STR or LTR for this calculation will depend on the market. Hope that helps!
- Parker Borofsky