To qualify, homeowners must be able to show at least two years worth of short-term rental income. Or, if they have rented through Airbnb for at least one year, a percentage of that income can be used for qualifications.
Guild said qualifying properties can have up to four units or be located in a planned unit development, and that the host’s existing mortgage does not need to be with Guild.
The refi option offers up to 97% loan-to-value ratios for rate and term refinances and up to 80% loan-to-value ratios for cash-out refinances, Guild said, adding that to qualify, homeowners must have a credit score of at least 620 and a debt-to-income ratio of no more than 50%.
“At Guild, we’re always working to offer niche mortgage programs and initiatives that serve more homebuyers and current homeowners,” said Guild President and CEO Mary Ann McGarry. “We are honored 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.”
Guild now becomes now the fourth lender to participate in the Airbnb mortgage finance program, which was launched last year with Fannie Mae. Through the program, Airbnb hosts can refinance their mortgages with select lenders who then sell those mortgages to Fannie Mae. Previously, Airbnb hosts could use Quicken Loans, Better.com, and Citizens Bank to refi their mortgages.
And now, they can use Guild too.
Erin Watts, Guild’s vice president of product strategy, said it’s important for lenders to find ways to recognize varying types on income, like that earned through short-term rentals.
“We’re looking forward to opening more doors to Airbnb hosts who are interested in refinancing their mortgage,” Watts said. “With lower rates driving an increase in refinances, there should be strong interest.”