It’s no surprise that the rental industry is changing, especially additions to the market such as Airbnb, which has become increasingly popular as an alternative to short-term rentals.
Now, refinancing will become easier for hosts. The company recently announced that it will be teaming up with Quicken Loans, Better Mortgage and Citizens Bank to allow hosts who have been renting out properties for over a year to apply their income toward a Fannie Mae backed refinance loan.
“At Airbnb, we’ve been able to help many reimagine the home as an asset, a destination and a contributor to the community,” said Nathan Blecharczyk, Airbnb co-founder and chief strategy officer, in a statement. “Today, some of the nation’s largest financial institutions understand that Airbnb is an economic empowerment tool that can generate important income for families, and they are working to recognize this.”
This partnership will be more beneficial for hosts doing short-term rentals, as the refinance options can be used for home improvements and future real estate investments.
“Technology is at the heart of everything we do at Quicken Loans, so it is a natural fit for us to partner with one of Silicon Valley’s most innovative companies,” said Jay Farner, Quicken Loans CEO, in a statement. “…We are very excited to be collaborating with the leader in home-sharing and tech-driven property rentals. Airbnb and Quicken Loans are firmly aligned to drive innovation in the real estate industry to dramatically improve and simplify client experience, as well as saving homeowners time and money.”
Vishal Garg, CEO of Better Mortgage, said in a statement “We are proud to be working with Airbnb and Fannie Mae to make it easier for Airbnb hosts to reinvest in their most important economic asset, their home…Better can now digitally underwrite Airbnb income and offer hosts better home financing options than previously possible.”
Fannie Mae developed this collaboration so homeowners could maximize their investments. To apply, hosts need to provide a “proof of income” statement from Airbnb. If successful, Fannie Mae is open to considering other lenders into the program.