The refinancing option is available in all US states
Guild Mortgage has partnered with Airbnb to launch a new refinancing option for all Airbnb hosts in the US.
Guild’s new refinancing option accepts short-term rental income from Airbnb as source of qualifying income on refinance applications for owner-occupied primary residences.
The company said hosts who own their home, list their primary residence on Airbnb and are interested in refinancing their mortgage could apply for the mortgage option. Borrowers with existing mortgages with other lenders can also sign up their properties, which can include up to four units or be located in a planned-unit development.
To qualify, borrowers need a minimum credit score of 620 and debt-to-income ratio of no more than 50%. The refinancing option is available to qualifying borrowers in all states, and offers loans up to 97% loan-to-value ratios for rate and term refinances, and up to 80% for cash-out refinances.
“As more people rent part of their home through partners like Airbnb, it’s important that lenders are proactive in recognizing this type of income,” said Erin Watts, vice president of product strategy at Guild. “We’re looking forward to opening more doors to Airbnb hosts who are interested in refinancing their mortgage. With lower rates driving an increase in refinances, there should be strong interest.”
Additionally, customers must provide two years of personal tax returns, including Schedule E to show proof of their Airbnb rental income. They must also submit an Airbnb income statement indicating a minimum two-year history of getting short-term rental income from the borrower’s principal residence for qualification or a percentage of the rental income (if less than two years but greater than a year of stable history of short-term rental income).
“At Guild, we’re always working to offer niche mortgage programs and initiatives that serve more homebuyers and current homeowners,” said Guild Mortgage President and Chief Executive Officer Mary Ann McGarry. “We are honored to be one of the lenders selected to partner with Airbnb to help customers use their short-term rental income to qualify for a refinance.”
