During the last decade or so, homeowners began to use services like AirBnB and VRBO to rent their vacation property and generate income from these assets when not being used by the owner. These homeowners typically purchase a vacation property for cash or obtain normal conventional loans to finance their purchase. Vacation owners who purchased a property for cash sometimes want to obtain a cash out refinance to take that cash out of their vacation property and are surprised to learn that they cannot count any short term income from their vacation property until they have a two year income history (as documented on their tax returns). Conventional lenders will not count short term rental income until the homeowner shows a two year history of receiving this income.
Hurst Lending Found a Way to Use Short Term Rental Income
Here at Hurst Lending, 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. That means that Hurst Lending will use short term rental income from Airbnb and VRBO as a basis for refinancing a mortgage before you have two years of income history on your property..
Short Term Rental Income Documents Directly from VRBO and Airbnb
Hurst Lending can access documented rental income information directly from VRBO or Airbnb to verify the necessary qualifications for a refinance. The accurate, real-time data helps Hurst use the information to calculate your Debt Service Coverage Ratio (DSCR) and ultimately gives us better tools to qualify and approve mortgage refinances.
Larger Loans and Multiple Properties Are OK
Though there are some restrictions, Hurst Lending’s program allows for loan amounts of up to $5 million. Additionally, for our investor clients who have portfolios with several properties, Hurst offers refinancing for an unlimited number of investment properties. For a full list of our product highlights and restrictions, contact Hurst Lending today.