New Program Allows Short-Term Rental Income to Be Used for Refinances  New Program Allows Short-Term Rental Income to Be Used for Refinances


New Program Allows Short-Term Rental Income to Be Used for Refinances

Written By: Jaymi Naciri
Monday, April 29, 2019

The new program, from Quicken Loans, uses ldquo;rental income earned through VRBO to be used to qualify for a mortgage refinance,rdquo; the lender said in a news >

Typically, investment property income can help a borrowerrsquo;s debt-to-income ratio, but being able to show income from short-term rentals is a sign of the times. "Vrbo helps homeowners use one of their biggest assets as a source of income.nbsp;Now Quicken Loans can accurately review that income and consider it when calculating the debt-to-income ratio ndash; a major data point considers when qualifying for a mortgage," Jay Farner, CEO of Quicken Loans, said in a >

This evolution makes sense when you consider how closely tied the income generated by these short-term rentals is to ongoing living expenses. ldquo;Rental income and mortgage payments are often intertwined,rdquo; said Inman News. ldquo;A June 2018 market report from Vrbo found that more than 50 percent of short-term rental owners utilizing the platform use income generated from their property to cover at least 75 percent of their mortgage payment.rdquo;
The rental income can come from a primary residence or a second home, and primary residences, vacation homes, and investment properties can all be refinanced under the program.

The Vrbo partnership with Quicken comes on the heels of competitor Airbnbrsquo;s announcement last year that itrsquo;s working with both Quicken and Fannie Mae to ldquo;allow anyone who has rented out property on Airbnb for a year or longer to count some or all of that money as incomerdquo; when applying for a refinance, said MarketWatch.





Copyright© 2019 Realty Times®. All Rights Reserved
Search in English Search in Spanish Search in French Search in Italian Search in Portuguese Search in German Search in Russian Search in Mandarin
Join Our Team
Sell Your Property
Buy With Me
Area Schools
Updated: Tuesday, May 21, 2019

Top Pros and Cons of Real Esta...
The Positives:Direct Control ndash; When ...

What to Expect When Applying f...
A jumbo loan is one where the loan amount exceeds current conformin...

Copyright ©2019Realty Times®. All Rights Reserved

Plus Mortgage Calculator
Client Login
Receive Email Alerts