Guild Mortgage creates mortgage option with Airbnb

US: Independent mortgage lender Guild Mortgage has launched a mortgage option in partnership with Airbnb.

The mortgage option will consider short-term rental income from Airbnb as an acceptable source of qualifying income on refinance applications for owner-occupied primary residences.

It will be available to all hosts in the U.S. who own their home, list their primary residence on Airbnb and are interested in refinancing their mortgage. The property can be made up of up to four units or be located in a planned unit development.

The refinancing option offers loans with a maximum of 97 per cent loan-to-value ratios for rate and term refinances, and up to 80 per cent loan-to-value ratios for cash-out refinances. A minimum credit score of 620 and debt-to-income ratio of 50 per cent or less are required for qualification.

In a press release, Guild Mortgage president and CEO, Mary Ann McGarry, said: “At Guild, we’re always working to offer niche mortgage programs and initiatives that serve more homebuyers and current homeowners. We are honoured 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 short-term rental income by providing two years of their personal tax returns.

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 primary residence. Meanwhile, if they have a stable history of rental income of less than 24 months but greater than 12 months, a percentage of that income can be used to qualify.

Erin Watts, Guild’s vice president of product strategy, said: “As more people rent part of their home through partners like Airbnb, it’s important that lenders are proactive in recognising this type of income.

“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,” she added.

Guild specialises in developing unique pilot programmes and niche products to help neighbourhoods and communities. It seeks to serve the needs of any homebuyer as well as help first-time buyers to own their homes, often through government loan programmes.

For more information, visit the Guild Mortgage website here.