From a mortage site :Although Airbnb rentals have become wildly popular, there isn’t a loan specifically for Airbnb use. However, plenty of financing options are available with rental property investors in mind.
Understand that when trying to secure financing for an Airbnb/short-term rental property, mortgages for investment properties work differently than a loan for your primary residence.
The biggest of these is that you’ll need a larger down payment to secure the financing, usually a minimum of 15%, and you’ll likely face higher interest rates as well.
The mortgage industry is catching up to the sharing economy, with some lenders letting Airbnb hosts use rental income to refinance home loans. Until this shift, banks and other lenders would hold mortgage refinance borrowers to more stringent requirements if part of their income came from renting out their homes.
Short-term rental income from brokers like Airbnb can be high in the summer and low in the winter, depending on where you live. Many lenders saw this as an increased risk.
Although loans may have been approved in smaller numbers in the past, lenders charged higher interest rates or disqualified customers from mortgage refinancing if they wanted to include rental income in their applications.
That thinking has changed. What was considered an unsteady side gig is now a sign of stability.
As the model has been proven and Airbnb has demonstrated staying power, lenders have followed suit and are relaxing rental income parameters.
It has taken years for regulatory boards such as Fannie Mae to determine that Airbnb rental income can help pay a mortgage. Fannie Mae changed the policy in 2018, and it is now widely considered a powerful tool for economic empowerment among
My comment: In a change from the past, the GSEs do allow lenders to use Airbnb /STR to qualify a borrower. However, that is the borrower's personal or business income thing and has no more bearing on the appraisal than if the borrower claimed income from mowing lawns. Appraisers often seem to get lender guidelines confused with appraiser guidelines.
Fannie and Freddie, while allowing lenders to qualify borrowers using STR, do not want the residential zoned properties valued in the appraisal using short-term or AirbnB rents.
The way Airbnb affects value is if the area becomes popular for STR use due to being near a beach, resort, college or hip urban area. Even if tht is the case we STILL do not value a residential property using STR rents - however, we can comment that the potential to collect STR rents is baked into area prices - and cite that MLS comments are it makes a perfect ARNB etc.
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