Airbnb and Refinancing
The home rental company Airbnb announced it is partnering with Fannie Mae and other financial institutions to “consider home-sharing income when it comes time to refinance your mortgage,” according to an email distributed to Airbnb hosts. One Seattle resident who earned $30,000 as an Airbnb host the year before applying to refinance his home equity line of credit was told his bank “didn’t allow home-equity lines of credit on properties in which the homeowner is operating a business, including Airbnb”. Airbnb was motivated by hearing about refinance issues like these from their hosts, Papas said, and got into conversations with Fannie Mae and lending institutions about the proof of income verification hosts would need to make their earnings count. In keeping with the fact that the company was founded by “a couple guys struggling to pay their rent,” said Papas, “ We’ve long wanted to help people make a little extra money using an asset that’s traditionally been one of their biggest expenses.” On the financial institutions said of things there is valid concern. It’s hard to validated the amount of income one may have with Airbnb because of cancellations and market shifting. Still does not change the fact that Airbnb is a good way to create a side hustle and pay bills. In my opinion it’s always smart to make more money and pay off any loans you may have especially the larges assets like houses and cars. Airbnb sure has grown quite a lot in the last couple years and with this development could the company grow further? Could this be the future of paying off your house?