For the first time, homeowners who rent their primary residence on Airbnb can include their hosting income on mortgage applications when they refinance their existing loans with three lenders, including giant Quicken Loans.
Fannie Mae has agreed to back the loans and, if all goes well after a 90-day trial with the three lenders, “make it broadly available,” said Jonathan Lawless, Fannie’s vice president of product development and affordable housing.
This will be the first time that Fannie has considered income from a borrower’s home, rather than a separate rental property, on mortgage applications. It also represents a big step in recognizing income from the gig economy.
“We’re not just a W-2 economy anymore,” said Bob Walters, president and chief operating officer of Quicken Loans.
The loans cannot exceed Fannie’s loan limits, which range from $453,100 in most places to $679,650 in high-cost counties, including most of the Bay Area. Borrowers must meet other Fannie requirements, including a minimum credit score of 620.
The other lenders in the pilot project are Citizens Bank and Better Mortgage. Borrowers do not need to have an existing mortgage with the three lenders to refinance with them.
Fannie has agreed to the trial because Airbnb can verify income claimed on the refi applications. Borrowers must submit proof of income from Airbnb.
disclaimer: for information and entertainment purposes only