Since Airbnb launch in early 2008, Airbnb Inc. has forever changed the way travelers view and locate places to stay when away from home. The "old days" of locating traditional hospitality locations are OVER - Thank Goodness to Airbnb, investors now have have the ability and opportunities to compete, and often times outpace, revenue of traditional market rents using a standard 12 month lease.
Airbnb has made it possible for virtually anyone who controls a rental property or single family house or room fro that matter, to make decent part time or full time income. All due to a 3rd party that doesn't own any real estate.
Most of our clients are experienced real estate investors that have multiple income property loans either on a monthly rental or expanding into the vacation rental model not using their current primary residence. Whether you are a seasoned pro like many of our clients or a first time investor, we are here for you to help grow your rental business. Call us today!
There is not an officially sanctioned “Airbnb loan” just yet as of spring 2019. We have been speaking with them but, truth be told, the home-renting beast remains on the sidelines with their models of connecting travelers with property owners. We can't really blame them. committing to a dedicated lending division is a complete different undertaking. There are only a FEW banks that understand Airbnb loans, this business model, and are able to offer financing for this type of asset class.
The term “Airbnb loan” has come to reflect basically any financing vehicle available that someone takes on a loan to purchase, refinance, or cash out on a home they own.
Understanding there are no official “Airbnb loans” available for investors doesn’t mean you’re out of lending options. Although we don't want you to go anywhere else, we feel compelled to describe the other options and why we are a different lender that focuses strictly on the entrepreneur looking to expand the rental business. There are actually a few different types of Airbnb loans investors to consider when comparing rental property loans:
Keep in mind these are loans that are REQUIRED to be documented in a personal name.
We provide financing to almost any entity such as LLC's, LLP's, sCorp, cCorp, land trusts as well as individuals.
First, even if you are able to locate a lender that is OK with you "stating" your personal income, they often times won't be comfortable financing your Airbnb property because most lenders don't understand how to underwrite this asset class.
Second, 95% of the stated income lenders that are able to successfully close on Airbnb rental properties will use what is called market rental income or a FNMA form 1007 - Market rental survey.
Good News - We have a unique underwriting model that can quickly be determined by asking just a few bits of information. We use a hybrid and have the ability to use market rents as well as income proven income guarded by a safe LTV (loan to value) of up to 75% of today's value.
We provide Airbnb financing up to 80% of the value and interest rates in the 6-7% range, without causing you, the borrower headache.
The many drawbacks of this type of loans is you will often be restricted to leverage of 60-65% LTV. Leaving trapped equity in your cash out or requiring you to produce a higher out of pocket down payment of at least 30-40% or more coupled with much higher interest rates.
We finance Airbnb rental property with competitive interest rates starting in the low 6's without using persona tax returns, using your LLC, Scorp, or personal name. Call us now!
Rental Property Loan such as Vacation Rentals, VRBO, and Airbnb properties are all we focus on financing. Our associates are experienced and we do not collect up front fees or applications.
As a Direct Mortgage Lender, we specialize in working with experienced investors or first time property owners who want to grow their rental portfolios.
If you’ve had trouble with traditional bank-type mortgage lenders in the past, you have located the right lender for you! Please spend a few minutes to complete our loan application or call us now to discuss how we can help and you can begin improving your portfolio.