Airbnb LOANS FOR INVESTORS

As we touched on above, most traditional lenders want nothing to do with Airbnb properties. Even though the company has been around since 2008, the vast majority of banks have simply never been interested in financing vacation rental properties. In terms of mortgages, their business model has always been focused on helping people pay for their primary residences.

Not surprisingly, even among those traditional banks that would consider financing the purchase of an Airbnb property, it’s unlikely that any have significant experience serving this community. They might be able to put up the required money but structuring the loan to meet the unique needs of this market will probably not be on the table.

Listing your property on Airbnb is becoming more and more competitive, though that’s not to say it still doesn’t offer plenty of potential for big returns.

However, what it does point to is just how valuable rental properties are becoming. There is also very little reason to think that will change in the years to come.

This is just one more reason to take your business toAirbnb property lenders when you’ve found a home you’d like to purchase and begin renting out. On average, traditional lenders need 30 days to approve a mortgage. During busier months, it could easily take between 45 and 60.

That’s simply too long when you’ve found a valuable property. Aside from all the other investors who are looking for Airbnb properties in your area, there are also conventional house-hunters who are probably considering it, as well.

Nothing is worse than knowing you found the diamond in the rough but are unable to capitalize on it.

With non-bank lenders who have experience serving the Airbnb community, you can look forward to a streamlined process that won’t require tax returns or W2s, or 30+ days to get the approval done.

We are asset-based lenders. So, our main interest is simply the property itself. As long as it shows the potential to create the kind of income you need to pay us back, we’ll most likely be happy to offer you a loan.

Another reason you’ll be in good hands with Airbnb property lenders is because you can return to yours again and again for further financing, so you’re able to continue growing your portfolio. The sky’s the limit!

The same can’t be said for traditional financial institutions.

First of all, FNMA’s 5-10 Properties Program puts a limit on how many mortgages they can finance. Therefore, even if you did find a bank that was willing to fund your Airbnb investment, you wouldn’t be able to go back to them after your portfolio contained 10 homes. That’s a major disadvantage if you find that your first property is a huge success. You’d probably want to buy more homes in the area, yet you’d be limited to only 10.

Second, it’s the actual bank that decides how many investment properties to finance. Just because FNMA has the resources to fund 10 doesn’t mean your bank will. Evena bank that feels comfortable giving you a loan for a house to rent out will most likely want to wait a number of years before doing so again, just be sure you see returns.

Unfortunately, they may still not feel comfortable giving you another loan, even if you haven’t hit your limit for FNMA financing.

Nonbank lenders that understand the Airbnb market don’t care how many properties are in your portfolio. As long as you’re making your payments on time, we’ll be happy to consider you for another loan to grow your portfolio.