Guild Mortgage recently launched a new mortgage option in partnership with Airbnb that considers short-term rental income from Airbnb as an acceptable source of qualifying income on refinance applications for owner-occupied primary residences.
The refinancing option is available to all U.S. hosts who own their home, list their primary residence on Airbnb and are interested in refinancing their mortgage, Guild says in a release.
The property can include up to four units or be located in a planned unit development.
The host’s existing mortgage does not need to be with Guild.
Available to qualifying borrowers in all states in which Guild provides mortgage financing, the refinancing option offers loans with up to 97% loan-to-value ratios for rate and term refinances and up to 80% loan-to-value ratios for cash-out refinances.
A minimum credit score of 620 and debt-to-income ratio of no more than 50% are required to qualify.
“At Guild, we’re always working to offer niche mortgage programs and initiatives that serve more homebuyers and current homeowners,” says Mary Ann McGarry, president and CEO of Guild Mortgage. “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.”
To apply, customers must document proof of their Airbnb rental income by providing two years of their personal tax returns, including Schedule E.
They must also provide an Airbnb income statement that demonstrates a minimum two-year history of receiving short-term rental income from the borrower’s principal residence or, if less than 24 months but greater than 12 months of stable history of short-term rental income, a percentage of the rental income may be used for qualification.