Refinancing With Airbnb Income

[JohnF]

For UK hosts, RBS/NatWest are happy to take STR income into account, at least they did pre Covid…

JF

[Lisannem]

Yep, the info I posted only applies to properties in the US.

[Helsi]

Thanks @JohnF I didn’t know banks here did that.

[NordlingHouse]

@Lisannem

The issue is that Fannie Mae considers rental income on a single family, owner occupied, primary residence “boarder income”. And the Fannie Mae HomeReady program is the only program that allows boarder income to be used for qualifying. If you claim the income on schedule C rather than schedule E then you might be able to get away with it. But you’ll need to have a two year history and the income will need to be averaged over that two year period.

It looks like I might be able to refi at the end of my forbearance next April, when they add the missed payments to the end of my loan. But I’m paying 5.25% on my 2005 30 year mortgage because I haven’t been able to refi before, so refinancing would save me a lot of interest.

My house is a 2-level duplex, and the upstairs apartment’s rooms have been on Air for 2 years before COVID, and was rented on annual apartment leases before that. Because of heating costs the old place always ran a loss for tax purposes. allowed for owner occupied rentals. As a matter of fact, it will continue to do so until I can add more bathrooms and raise the rates.