Everything You Need to Know About Airbnb Loans

You may have heard of Airbnb for taking vacations, and maybe you even know someone who’s rented out their own apartment or home on Airbnb.

Airbnb has become one of the most well-known marketplaces for finding a vacation rental or even a short-term lease in a different location. Some people have to travel for a year or less for work and renting in an Airbnb location is a great option to find a place that is furnished and move-in ready.

Plus, many Airbnb locations are in prime tourist areas so you will be able to find a great location and it will be more affordable than other overnight stay options like hotels.              

So maybe you’re wondering now, what are Airbnb loans?

Well, at this point, it’s simply any financial option that allows you to purchase a vacation or rental property. Unfortunately, despite the many efforts of various lenders, and especially including VRPL, Airbnb has not yet taken to the idea of specific funding.

There is a certain risk associated with this particular market of vacation and short-term rental properties. It’s possible to help investors get better rates, charge lower prices, and maximize their return on investment with a specifically structured loan for this market.

Airbnb, however, is satisfied connecting travelers and rental property owners without managing their funding options.

Just because Airbnb does not offer a specific loan for their platform, it doesn’t mean you cannot finance a property specifically for use on Airbnb.

There are still options available for you to finance a rental property, regardless of how you decide to attract tenants and renters.

That’s right, you can purchase a rental property with a standard mortgage as long as you meet all other requirements of the mortgage.

This will typically include:

• Credit score of 620+
• Bank statements
• Tax returns
• Debt-to-income ratio of 33-43%
• Downpayment up to 20%+

With excellent credit, a low debt-to-income ratio, and the required down payment, you could use a standard, government-backed, mortgage to purchase a vacation property.

Most people opt for another option though since the requirements are quite stringent.

 A rental property loan differs from a standard mortgage in that the loan is specifically taken with the idea that the owner will earn rental property income.

Rental property loans include most of the same standard documents, however since the property is being financed as a rental and not a primary residence, the risk is higher for the lender.

To offset the risk of a rental property, the interest rates are typically higher than with a traditional mortgage. Also, rental property loans are not always government-backed but there are some options available.

A stated income loan is a great option for someone who wants to purchase a rental property. If you’ve had issues obtaining funding in the past either due to information found in your portfolio or having too many loans out on investment properties, you may be able to obtain a stated income loan.

Stated income loans have fewer requirements and less fees than traditional loans.

Also, your personal debt-to-income is not considered for lending purposes. The most important factor in getting approved for a stated income loan is that the property you’re purchasing has the capability of making money. The owner must be able to show that they will be able to pay off their loan with the business from the rental property.

VRPL can help you get the loan you need. We specialize in working with people who want to purchase rental properties and use them on platforms like Airbnb and VRBO.

We offer lots of benefits and easy access to funding so you can grow your income with vacation rental properties. This is a great way to earn passive income while owning a vacation home.

VRPL makes the loan process easier with:

• Lesser paperwork: We don’t require all of your bank statements and tax returns. We work with experienced property investors and do what we can to make the process of obtaining a new rental property loan as simple as possible.
• Faster processing time: Due to less paperwork, there is less processing time for your approval. We work quickly to get your loan approved as fast as possible so you can start earning income now.
• No application fees: VRPL will not make you pay application fees for our stated income loans. With our in-house underwriting team, the ability to raise our own capital, and make our own decisions have provided the ability to process applications as efficiently as possible.

If you’ve had trouble with traditional or government-backed loans in the past, VRPL may be able to help you. We will focus on the property value and the income potential, not your history or the number of other loans you have.

To become a multi-figure earning property investor, you may need to access more than 10 loans at a time. Government-backed loans limit your ability to maximize investment opportunities.

If you want to make an investment in a property, you’re a property investor. Whether it’s your first or fifteenth property investment transaction, you can access property investment loan that’s right for you.

VRPL makes it faster and easier to finance vacation rental properties.

We have the freedom to make our own decisions because we raise our own capital and our underwriting is done in-house. We have an advantage that we pass on to our customers in every transaction.

Contact VRPL today at 1-888-999-4375 to learn more about how you can finance your next vacation rental property. You can also request a quote now.