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How To Get An Airbnb Mortgage For Your Rental Property

By Dan Green

Want to use a mortgage for an Airbnb property? Here’s our review of the program and where you get approved.

About The Airbnb Mortgage

Airbnb Mortgage - Pre-Approval - Growella
Use the Airbnb mortgage program for your home

In 2008, Airbnb was founded.

Ten years later, government-backed mortgage group Fannie Mae added a mortgage approval clause allowing Airbnb hosts to use their Airbnb rental income as part of a lender’s approval.

A long-term lease for the rental property is not required, and the program works for all residential home types:

Airbnb hosts get access to a full suite of mortgage loans, too.

Homeowners can choose from among the 30-year fixed-rate mortgage, the 15-year fixed-rate mortgage, the 5-year adjustable-rate mortgage (ARM), and other fixed and adjustable loan terms. Hosts aren’t subject to penalties, additional fees, or a worsening of mortgage rates.

The Airbnb mortgage option is an ordinary loan with extraordinary allowances.

The program’s primary advantage is how it lets Airbnb hosts declare higher levels of annual income,¬†which results in a better mortgage approval.

Airbnb hosts get access to more loan programs, at lower mortgage rates, and with lower fees as compared to homeowners who use other short-term rental platforms such as HomeAway or VRBO.

Airbnb hosts get credit for the rooms they rent out. Typically, HomeAway and VRBO hosts do not.

The Airbnb-assisted mortgage program is available in all 50 states and Washington, D.C., and getting pre-approved takes less than 3 minutes online.

Apply for an Airbnb mortgage here.

When To Use The Airbnb Mortgage

The Airbnb mortgage is a refinance loan. It can be used by any Airbnb host with a history of earning income from an Airbnb property.

Homeowners can use the Airbnb mortgage to do any of the following:

When you’re doing a rate-and-term refinance — that is, lowering your mortgage rate or changing the length of your loan — it’s generally good to proceed if you can reduce your monthly payments without incurring much in the way of closing costs.

Many lenders offer zero-closing cost mortgages, and zero-closing cost loans are particularly well-suited to rate-and-term refinances.

For homeowners doing a cash-out refinance, the math works a little differently.

However, it’s still good to limit your closing costs when possible — even if it means accepting a slightly higher interest rate.

The Airbnb mortgage program can be used for existing Conventional, FHA, VA, or USDA mortgages.

Where Can I Get An Airbnb Mortgage?

The Airbnb mortgage is fully-functional as a “pilot program” for Fannie Mae. However, it’s limited in its availability to Airbnb hosts.

Out of the 26,000+ mortgage companies nationwide, only three can fulfill Airbnb home loan orders:

  1. Better Mortgage
  2. Quicken Loans
  3. Citizens Bank

Each of the approved Airbnb lenders offers an online application process, and we reviewed all three. Better Mortgage offers the fastest, cleanest approval experience of the group.

Apply for the Airbnb mortgage here.

Written by Dan Green

Dan Green is a mortgage lending expert and the founder of Growella. Prior to Growella, Dan was a six-time, top-producing loan officer; and, ranked repeatedly among the top 1% of loan officers nationwide. Dan's home buying expertise has been in print and on TV with The Wall Street Journal, NPR, Forbes, CNBC, and others.

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