Historically, Short-Term Rental Income Could Not Be Considered When Qualifying for a Refi
Refinancing your mortgage for a better interest rate can translate to big savings and a quicker mortgage pay-off regardless of what type of property you own. In 1995 when homeowners began to generate income from their assets thru VRBO (and Airbnb almost 10 years later), homeowners turned a sharp ear as interest rates dropped and looked to lenders for refinancing options. They were surprised to learn that lenders didn’t typically consider short-term rental income as a basis for refinance unless the property was specifically an investment property.
Hurst Lending Found a Way to Include Airbnb and VRBO Income
We know that as the business world evolves, it’s important to keep up with changes in the marketplace and the evolving needs of mortgage loan customers. With the knowledge that more than half the property owners with short-term rentals are covering a vast majority of their mortgage payment with their rental income, we were able to structure a program that allows customers to use that income to refinance their mortgage.
We Use Documents Directly From VRBO and Airbnb
As short-term rental platforms’ income documentation reporting has become more sophisticated, obtaining accurate rental income data has become easier. Specific benefits of our program, including no income documents, options that allow for no reserves, and lower allowable credit scores make our program uniquely qualified to meet the needs of short-term rental income customers. We can access documented rental income information that comes directly from VRBO or Airbnb to verify your qualifications for the refinance. The accurate, real-time data helps us use the information to calculate your Debt Service Coverage Ratio (DSCR, commonly also known as debt-to-income ratio) and ultimately gives us better tools to qualify and approve your mortgage refinance.
Larger Loans and Multiple Properties Are OK
Though there are some restrictions, our program allows for loan amounts of up to $5 million. For our customers who have multiple investment properties, we offer refinancing for an unlimited number of investment properties as well. For a full list of our product highlights and restrictions, contact us.