Rental Home Financing Investment Loans
Who Can Apply for an Airbnb Loan?
Airbnb is a great way to make money off your property if you have a place that goes unused for most of the year. However, this does not come without caveats.
To qualify for an Airbnb loan, you will need to have a property that is classified as a second home or investment property with sufficient equity. You should check in the area where you want to finance the property about short-term rental laws for use of your real estate as an Airbnb investment.
Many jurisdictions have imposed restrictions on Airbnb's investment leases. Cities and communities across the country have different rules and regulations regarding short-term rentals, so be aware of the rules and regulations that apply to your property and check if your specific community permits or encourages renting for a short term.
Are you ready to apply online or learn more? We are waiting to serve you, call today or use our contact form.
How Much Can I Borrow for Short-Term Rentals?
Airbnb mortgages are loans that are offered by banks, usually for primary residences but the profitability of playing in the Airbnb markets is making people wonder just how many short-term rental homes they can own. These mortgages can generate positive cash flow, bankers know this so take advantage of it.
An Airbnb mortgage is "a loan that's backed by the borrower's rental income from their Airbnb property." One of the main benefits of this type of loan is access to more money than they would have if they had just offered rental income alone. Banks are willing to lend up to 75 percent of the home value, as long as it matches the requirements for being eligible for an Airbnb mortgage.
Since the loans are based on the income of the property, the sky is the limit on the number of properties you can mortgage. We have a blanket loan program to cover multiple properties under one loan so you can grow your portfolio as fast and as large as you want.
If you're interested in learning more about how much you can borrow with an Airbnb mortgage, be sure to contact us today and we also have a great article on the best places to find Airbnb property for sale.