SAN DIEGO--(BUSINESS WIRE)--Guild Mortgage, one of the largest and most experienced independent mortgage lenders in the U.S., has launched a new mortgage option in partnership with Airbnb that considers short-term rental income from Airbnb as an acceptable source of qualifying income on refinance applications for owner-occupied primary residences.
Guild’s refinancing option is available to all U.S. hosts who own their home, list their primary residence on Airbnb and are interested in refinancing their mortgage. The property can include up to four units or be located in a planned unit development. The host’s existing mortgage does not need to be with Guild.
Available to qualifying borrowers in all states in which Guild provides mortgage financing, the refinancing option offers loans with up to 97% loan-to-value ratios for rate and term refinances, and up to 80% loan-to-value ratios for cash-out refinances. A minimum credit score of 620 and debt-to-income ratio of no more than 50 percent are required to qualify.
“At Guild, we’re always working to offer niche mortgage programs and initiatives that serve more homebuyers and current homeowners,” said Mary Ann McGarry, president and CEO. “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.”
To apply, customers must document proof of their Airbnb rental income by providing two years of their personal tax returns, including Schedule E. They must also provide an Airbnb income statement that demonstrates a minimum two-year history of receiving short-term rental income from the borrower’s principal residence or, if less than 24 months but greater than 12 months of stable history of short-term rental income, a percentage of the rental income may be used for qualification.
Erin Watts, Guild’s vice president of product strategy, said the initiative will provide more options to those who offer short-term rentals on their properties.
“As more people rent part of their home through partners like Airbnb, it’s important that lenders are proactive in recognizing this type of income,” she said. “We’re looking forward to opening more doors to Airbnb hosts who are interested in refinancing their mortgage. With lower rates driving an increase in refinances, there should be strong interest.”
For more information, visit https://www.guildmortgage.com/airbnb-refinance/.
A top-10 national lender by purchase loan volume, Guild specializes in developing unique pilot programs and niche products to help deliver the promise of home in every neighborhood and community it serves. Its loan professionals can serve the needs of any homebuyer, from helping first-time buyers achieve homeownership, often through government loan programs, to homebuyers looking to upgrade with a jumbo loan. Guild also specializes in helping active duty and retired military personnel to secure VA loans, with 100 percent financing and flexible qualifying standards. The company is consistently recognized for its impact in the communities it serves, commitment to customer service, strength in regulatory compliance and workplace culture.
About Guild Mortgage
Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Mortgage Company is a nationally recognized independent mortgage lender offering pilot and niche residential mortgage products and local in-house processing, underwriting and funding. Its collegial and entrepreneurial culture enables it to deliver unsurpassed levels of customer service. Having been through every economic cycle, the company has grown 15-fold since 2007, and now has close to 4,000 employees and 205 retail branches in 33 states. Guild’s highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, down payment assistance programs and other specialized loan programs. The company generated $16.53 billion in loan volume in 2018, as compared to $1.23 billion in 2007. In addition, Guild services more than 220,000 loans, which totaled $46.53 billion as of December 31, 2018. It has correspondent banking relationships with credit unions and community banks in 43 states and services loans in 47 states.