Using your house as an ATM just got a little easier At a time when cities are still sorting out what effect, if any, Airbnb has on local rental and housing markets, the home-sharing giant is launching a new initiative that will further weave it into the fabric of owning a home.
In partnership with lenders Quicken Loans, Citizens Bank, and Better Mortgage, homeowners can now count income from renting their properties on Airbnb when refinancing a mortgage. The initiative also has government backing, as Fannie Mae, the mortgage facilitator that?s still under government conservatorship, is also part of the venture.
?This initiative was developed with Fannie Mae to identify new ways of recognizing home-sharing income, making it possible for homeowners to maximize their investment to better reach their financial goals,? Airbnb said in a statement. ?The project is part of Fannie Mae?s work to find new, innovative ways to expand the availability of affordable mortgage credit.? Airbnb supplies its hosts with a Proof of Income statement that hosts can now include when applying with Quicken Loans, Citizens Bank, and Better Mortgage to refinance an existing mortgage. Homeowners refinance their mortgages to take advantage of lower rates, or often to tap unrealized equity created by rising home prices.
It?s often referred to as ?using your house as an ATM,? and it was one of the many issues at the heart of the housing bubble of the 2000s and its subsequent collapse in 2008. Another...