How do you like your eggs? The words "Bed and Breakfast" do not conform nor are they acceptable words for most of your gov't and conventional underwriters. Yes, we all know that it's more than likely just a vacation home that is rented a small portion of the year to help offset the costs or perhaps like most the owners vacate when they land a "renter" for the week. However, it can potentially cause your deal to "blow up" in underwriting. So take this with a big ol' bag of explosives and expletive’s and ask your underwriter if he or she will deny the property regardless of the need to use the "rental income" or if it's dead on arrival regardless. If you search the web for "Fannie Mae and AirBNB" you will see some somewhat misleading headlines; in the finer details there are 3 lenders that are in a "testing phase" and may allow for it on "owner occupied" properties. If the CPA put this down as "rental income" on the Schedule E and does not specify the "BNB" part from the 1099, you may be "OK," but take a look before you get too deep. Also, be sure to review homeowners insurance policies as insurance underwriters do not like these short term rentals either as it adds more risks to the policy. Mortgage and homeowners insurance underwriters often use "google" to dig a little deeper, so your borrowers home may show up on these rental sites. Moral of the story is do your research, learn and educate yourself and your borrowers so it doesn't cause unneeded pain as I can almost promise you, this scenario will come up. Technology is once ahead again of common sense and rigorous guidelines. We all know the homeowners are not buttering the renters toast !

Featured Posts
Recent Posts
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square