Airbnb, Fannie Mae, and 3 other big lenders announced a new partnership to use home-sharing as a tool to refinance one’s home.
The program will let anyone who’s rented out property on Airbnb for a year or longer count some or all of that money as income.
Refinancing a home can be a way for the owner to open up equity for big expenses like renovations, or even just to reduce their monthly payments.
Financial institutions have been reluctant to approve income from side-gigs since the mid-2000s, and rightfully so — poorly documented income claims on mortgage applications helped fuel the housing crash in 2008 (Airbnb promises their service reliably tracks income).
Fannie Mae will back the mortgages, and Airbnb hosts can apply to refinance their mortgage with Quicken Loans, Citizens Bank, or Better Mortgage.
In the growing gig economy, the Ubers of the world are catching flack for treating their workforce as disposable. Airbnb is looking to differentiate themselves from the pack, positioning themself as a company that looks out for its workers.