Quicken Loans has partnered with short-term rental company Vrbo to allow short-term rental income to be used to qualify for a mortgage refinance. Mortgages for primary residences, vacation homes and investment properties are eligible for the program.
Traditionally, rental income can only be used to qualify for a mortgage when it is earned on an investment property, as opposed to a short-term rental. This marks the first time Quicken Loans has allowed its clients to use income generated from Vrbo rentals to qualify for a mortgage. Quicken Loans is currently the only lender that allows customers to use Vrbo income to qualify for a mortgage.
“Vrbo helds homeowners use one of their biggest assets as a source of income,” said Jay Farner, CEO of Quicken Loans. “Now Quicken Loans can accurately review that income and consider it when calculating the debt-to-income ratio – a major data point (considered) when qualifying for a mortgage. As our economy continues to evolve, it’s important that our lending calculations continue to evolve along with them.”
“Homeowners who list their vacation homes on our marketplace have a unique financial opportunity to earn extra income,” said Bill Furlong, vice president of Vrbo parent company HomeAway, Americas. “For the first time ever, homeowners can use their Vrbo rental income to be considered for a mortgage refinance, unlocking more value and financial returns on their property investments.”