Just got this email and as this topic has come up I thought I’d share. Now the insurance companies have to get on board with home sharing.
https://blog.atairbnb.com/mortgage-refinancing/
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I saw this too, but until something official comes from Fannie Mae (holder of most residential mortgages in the US) I would be wary of it.
Since Airbnb says they are working with Fannie Mae, Fannie Mae should be willing to answer questions about it. I don’t see it on their website yet, but you could contact them. Or ask Airbnb to provide more documentation. I doubt Airbnb is lying, but I don’t usually think of Quicken Loans as being a reliable mortgage lender. Car loans, maybe. Mortgages, hmmm.
I believe that Quicken Loans processed the largest number of mortgages in the USA last year. And possibly the year before that as well.
You are correct! Odd, I would never think of going to them for a mortgage. Never.
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We financed our current mortgage with Quicken in 2011. Got a great rate and no issues. If anything, was even less a hassle than financing through a bank.
This seems risky on the lender side given the variability of the STR market. I’ve rented for years and annually gross around 18k. This year, we haven’t had a SINGLE booking since November and I just got my first booking for March. My market is totally flooded and I don’t expect the same earnings this year. I must say I’ve really, really enjoyed the break although my bank account is beginning to notice!
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Frankly, I’ve been waiting for the same dynamic in my market, but so far it’s been alright. There’s a new Airbnb every month in my little town of 1200, but I think the bubble will burst.
Also begs the question what percentage of residential listings are compliant with local laws, HoA’s etc etc.
Spot on @chicagohost. When the income comes based on a listing site, anything can change overnight. I will say once again…long time owners on Homeaway are now selling after many years or even a decade. It’s not even necessarily due to oversaturation - but completely due to the listing site changing the rules.
Sites like HA are doing “artificial saturation” in order to make you drop rates. If you don’t discount…you don’t get shown or buried at the bottom. If you don’t reduce your rates, then we show other properties an hour away ahead, etc. You don’t’ want to risk being reported by police with your finicky neighbors…then we will move up those places who have instant book and don’t vet - then the police can come and their house is trashed. Then we will ask you to call us to help fight against bans on STR. It’s the never ending cycle.
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