Just Approved: Airbnb income to qualify for loan is allowed

October 20, 2021

Property type: Single-family home in Petaluma.

Appraised value: $1.8 million.

Loan amount: $525,000.

Loan type: 30-year fixed.

Rate: 3.25%.

APR: 3.33%.

Backstory: A Realtor referred a past client to me who owned their home outright.

The client wanted to obtain a cash-out refinance. However, the client’s main source of income was from Airbnb. He routinely received funds as the Victorian home has a beautiful Bed & Breakfast type quality.

I explained that conventional lending DOES allow us to use Airbnb income to qualify, provided that there is rental income reported over the past two filed tax returns. In this case, the client had been reporting rental income for more than two years, so we easily cleared that hurdle.

The second requirement—which was a COVID-19 overlay lending requirement—mandated that the borrower show proof of receipt of rental income for the past three months. This basically verifies that the income is continuing and had not negatively been impacted by COVID-19. Based on his meeting these stipulations, I was able to qualify him for a loan of $525,000.